Future of Mining in Canada's North

Report January 2013
The Future of Mining

in Canada’s North
Economic performance and trends

The Future of Mining in Canada’s North
by Gilles Rhéaume and Margaret Caron-Vuotari
About The Conference Preface

Board of Canada Mining and its supporting industries will continue to
be important economic drivers in many of Canada’s
We are: Northern regions over the course of the next decade.
The foremost independent, not-for-profit, applied While great potential for mining development exists,
research organization in Canada. this potential must be approached in a balanced way.
Objective and non-partisan. We do not lobby This report discusses a number of important factors—
for specific interests. and their interrelationship with one another—that must
Funded exclusively through the fees we charge be considered to ensure that both the positive and nega-
for services to the private and public sectors. tive impacts of mining projects are fully understood.
Experts in running conferences but also at con- The findings from this report provide policy-makers,
ducting, publishing, and disseminating research; industry leaders, and communities with insight on steps
helping people network; developing individual that can be taken to support the future of sustainable
leadership skills; and building organizational mining in Canada’s North.
capacity.
Specialists in economic trends, as well
as organizational performance and public
policy issues.
Not a government department or agency,
although we are often hired to provide
services for all levels of government.
Independent from, but affiliated with, The
Conference Board, Inc. of New York, which
serves nearly 2,000 companies in 60 nations
and has offices in Brussels and Hong Kong.
©2013 The Conference Board of Canada*

Published in Canada • All rights reserved
Agreement No. 40063028
*Incorporated as AERIC Inc.
Forecasts and research often involve numerous assumptions and data

sources, and are subject to inherent risks and uncertainties. This information
is not intended as specific investment, accounting, legal, or tax advice.
Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Chapter 1—Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Chapter 2—Canada’s Northern Mining Potential to the Year 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Global Markets and Long-Term Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
A Global Overview of the Mining Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Mining in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Chapter 3—Business Factors Related to Mining Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Corporate Fiscal Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Regulatory Regimes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Aboriginal Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Infrastructure, Supply Chains, and Market Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Attracting, Developing, and Retaining Skilled Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Chapter 4—Impacts and Benefits of Mining for Northern Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Mining and Northern Communities: Times Have Changed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Relationship Building: Creating Partnerships and Trust With Northern Communities . . . . . . . . . . . . . . . . . . . . . . 44
Adverse Effects of Mining on Northern Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Future Steps Toward Improved Northern Community Net Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Chapter 5—Addressing Environmental Stewardship and the Impacts of Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Mining and the Environment: A Historical Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Mining’s Potential Environmental Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Approaches Toward Environmental Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Chapter 6—Creating a Sustainable Future: What Happens After a Mine Closes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Minimizing the Environmental Impacts of Mine Closure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Understanding the Impacts of Mine Closure on Northern Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Identifying Community Business Opportunities and Challenges After Closure . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
The Roles of Mining Companies and Governments in Mine Transition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Assisting Mining Workers With Closure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
A Sustainable Future for Mining in Canada’s North? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Chapter 7—Conclusion and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Appendix A—Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Acknowledgements
The authors of this report would like to thank Anja Jeffrey, Director, Centre for the North, and Siomonn Pulla, Senior
Research Associate, Centre for the North, for their helpful revisions, expertise, and insights. The authors would also like to
extend a very special thank you to the advisory board for this project, whose insights and contributions helped the project
take shape, and to the anonymous interviewees for sharing their experiences with us.
Finally, the authors wish to thank the Centre for the North’s roundtable members for their comments and their continued
investment in the Centre’s work.
About The Centre for the North
The Centre for the North is a major research initiative of The Conference Board of Canada. The Centre brings Aboriginal
leaders, businesses, governments, and community advocates together to identify challenges and opportunities, and to
decide how those challenges can be met. Working with Northern stakeholders and some 50 roundtable members, the
Centre delivers cutting-edge research and provides a vibrant forum for discussion on issues facing Canada’s North.
Vision: Toward a shared vision of sustainable prosperity
in Canada’s North. Sustainable Prosperity
Mission: Through research and dialogue, develop new
insights that strengthen the foundation for informed
decision-making. Governance and Policy-Making
Cross-Cutting Themes
The Centre examines issues from a Northern perspective, Transportation and Infrastructure
seeks to maximize Northern engagement, and prioritizes
Northern interests. The Centre looks at issues and Human Capital
opportunities across the North—a vast region that
includes the three Northern territories, as well as the Healthy Populations
northern portions of seven provinces.
Environmental Sustainability
To date, the Centre has published a number of founda-
Mapping
tional and issue-specific reports related to the underlying Thriving
Communities Economic
Security and
Sovereignty
themes of thriving communities, economic development, Potential
and security and sovereignty. The Centre’s research agenda

Foundational Themes
is based on a strategic interdisciplinary framework, as
illustrated in the exhibit “Sustainable Prosperity.”
CENTRE FOR THE NORTH MEMBERS
The Conference Board of Canada is grateful to the investors and roundtable members of the Centre for the North that,
through their membership, support the Centre’s research program.
Aboriginal Affairs and Northern Development Canada Government of Saskatchewan

Agnico-Eagle Mines Limited Saskatchewan Ministry of the Economy
Arctic Co-operatives Limited Government of the Northwest Territories
Bell Canada Aboriginal Affairs and Intergovernmental Relations
BHP Billiton Canada Inc. Government of Yukon
BMO Financial Group Yukon Economic Development
Canada Mortgage and Housing Corporation Health Canada
Canadian Institutes of Health Research Human Resources and Skills Development Canada
Canadian Northern Economic Development Agency Hydro-Québec
Cisco Systems Canada Co. IGLOO
De Beers Canada International Institute for Sustainable Development
Enbridge Inc. Inuit Tapiriit Kanatami
First Air Makivik Corporation
GE Canada Métis National Council
Government of Alberta Métis Nation—Saskatchewan
Northern Alberta Development Council MTS Allstream Inc.
Government of British Columbia Nishnawbe Aski Nation
Office of the Premier Northwestel Inc.
Government of Manitoba Norton Rose Canada LLP
Legislative Assembly of Manitoba Prince Albert Grand Council
Manitoba Aboriginal and Northern Affairs Privy Council Office
Government of Newfoundland and Labrador Public Health Agency of Canada
Labrador and Aboriginal Affairs RBC
Government of Nunavut RTL–Westcan Group of Companies
Nunavut Department of Economic SaskPower
Development and Transportation SaskTel
Government of Ontario Scotiabank
Ontario Ministry of Municipal Affairs and Housing TD Bank Financial Group
Ontario Ministry of Northern Development and Mines TD Securities Inc.
Government of Quebec The North West Company
Secrétariat au développement nordique Transport Canada
U15—Canada’s Fifteen Leading Research Universities
(Note: The findings and conclusions of this report are entirely those of The Conference Board of Canada, not of the Centre
investors and roundtable members.)
Executive Summary
The Future of Mining

in Canada’s North
C
anada’s Northern regions have an abundance of
At a Glance natural resources, and the potential economic
impacts are vast. Mining exploration and
Mining is the future economic driver of Canada’s
development is expected to be an important driver of
North. The long-term global demand for com-
many Northern economies over the course of the next
modities is increasing, and Canada is well pos-
decade. The possibilities for growth and development
itioned to take advantage of this opportunity.
appear to be tremendous. Economic forecasts prepared for
The overall Northern metal and non-metallic this report project that Canada’s overall Northern metal
mineral output is expected to grow by 91 per and non-metallic mineral output is expected to grow by
cent from 2011 to 2020, with a compound 91 per cent from 2011 to 2020, with a compound annual
annual growth rate of 7.5 per cent. growth rate of 7.5 per cent. Put into perspective, the aver-
age growth rate for the Canadian economy over that per-
This vast economic potential can be realized
iod is forecast to be 21.5 per cent with a compound
only if key regulatory, infrastructure, and
annual growth rate of 2.2 per cent.
human resource challenges are met.
All factors necessary for mining development However, mining is a cyclical, non-renewable resource
must be looked at holistically to ensure industry. How can this immense potential contribute to
that challenges and opportunities are the balanced economic growth of Canada as a nation and
fully understood. to the sustainable prosperity of Canada’s North? How
can mining projects benefit local and Aboriginal com-
Governments, industry, and Aboriginal groups
munities? And what is needed to ensure that development
need to coordinate their efforts, and must have
is carried out in a responsible and sustainable manner to
better knowledge of their roles and responsibil-
include considerations around the impacts of mine clos-
ities to be effective and to avoid duplication
ures? This report examines these questions to provide a
of processes.
better understanding of the impacts—both positive and
Six recommendations that lay the foundation negative—that major mining projects have, and can
for the future growth of mining in the North have, on the North.
are outlined in the report’s conclusion.
The report outlines the factors that need to be understood
and evaluated throughout the life cycle of a mine. These
include the regulatory environment, infrastructure needs
and gaps, capacity constraints from both a corporate
Find this report and other Conference Board research at www.e-library.ca

ii | The Future of Mining in Canada’s North—January 2013
and a community perspective, issues around employing Many companies must build their own transporta-
and retaining skilled labour, environmental stewardship, tion, communication, and/or energy infrastructure,
and deliberations around mine closures. adding significant costs to projects. To ease this
financial burden on industry, governments need to
Understanding these factors and their interrelationship invest broadly in Northern infrastructure and make
is key to ensuring that the mining potential in Canada’s use of public-private partnerships to share risks,
North can be successfully and sustainably realized. Each costs, and benefits.
proponent—whether government, industry, interest organ- Shortage of skilled labour. The mining industry
ization, or Aboriginal group—must have better knowledge worldwide is facing an impending labour shortage,
of their roles and responsibilities in order to adequately and Canada is not immune to this. Younger Canadians
assess the effectiveness of the current system and, espe- from all backgrounds are ignoring mining as a career
cially, to avoid duplication of processes. option. Therefore, mining companies must work to
recruit and retain new workers and look to under-
represented groups—such as women, new Canadians,
Understanding these factors and their interrelationship and Aboriginal Peoples—as potential sources of labour.
is key to ensuring that the mining potential in Canada’s Additionally, education and targeted training programs
North can be successfully and sustainably realized. are needed to ensure that local populations are able
to benefit fully from employment opportunities.
Engagement of local and Aboriginal communities.
Much progress has been made in the past two decades Companies and governments need to begin consul-
around many of these key challenges, such as the engage- tation processes as early as possible in order to
ment of local and Aboriginal communities and environ- provide communities with the tools necessary to
mental protection. Moreover, despite the global economic make informed decisions. While this is strongly
crisis, the business climate in Canada has remained recommended, companies are not obligated to do
stable. Nevertheless, significant challenges undeniably it. However, mechanisms like impact and benefit
remain. This report identifies a number of issues, agreements (IBAs) can be instrumental in ensuring
including the following: that a community’s needs are met and properly
Improvements to regulatory processes. Regulatory pro- accommodated. Furthermore, ongoing consultation
cesses are currently complex and cumbersome, and throughout all phases of mining activity—from
lack clarity and consistency for all proponents. For exploration to mine closure—helps build and
example, many project review boards do not have the foster positive relationships.
capacity to ensure project reviews are completed in Environmental stewardship. Improved regulations,
a timely manner. This presents significant obstacles industry-led initiatives, technological innovations,
for investors. This report recognizes that the federal and traditional ecological knowledge have all con-
government has taken important steps toward the “one tributed to improving the industry’s environmental
project, one assessment” goal, and that this could lead performance. Companies have also worked to mini-
to greater cooperation and coordination between mize their impacts on the land, and mine closure and
the federal and provincial/territorial governments. remediation have come a long way since mining’s
However, Aboriginal governments need to be full early days. Despite all of this, many important
and equal participants in decision-making. Challenges environmental concerns remain, particularly around
still remain with respect to the realization of land the uncertainties of the long-term impacts of mining
claims and self-government agreements and their on flora and fauna.
role in resource management and development. Clarity around mine closure: Mining projects can
Inadequate or non-existent infrastructure, including for deliver immediate benefits to residents in the form
transportation, energy, and connectivity. The infrastruc- of jobs, higher incomes, business opportunities, and
ture gaps are often the greatest deterrents to mining infrastructure. However, communities can be unpre-
development in Canada’s remote Northern regions. pared for mine closure. Robust closure plans should

The Conference Board of Canada | iii
be in place to help diversify the local economy, Addressing Human Resources Needs
especially when the community is reliant on a single
resource. Mining companies, governments, and local There is currently little understanding around the
communities should work together at the outset of implications of mining growth in terms of future
a project to provide solutions that will mitigate the human resources needs. This report estimates that
impacts of closure. about 17,000 Northerners1 will occupy new mining
jobs created over the 2011–20 period. Overall, the total
Each issue presents its own unique challenges and employment impact of the additional mining output
requires solutions and recommended actions in its own ranges between 43,000 and 70,000 Northerners over
right. Looking at these issues from a holistic perspec- the long-term forecast—jobs that will be created in
tive, the findings of this report suggest the following retail and related industries. Education and training
priority areas for policy development to support the programs are increasingly necessary to provide equal
future of sustainable mining in Canada’s North. opportunities for local residents working in mining
development. While the mining industry has taken the
lead in this particular area, multiple levels of govern-
A Transparent and Integrated ment also need to be involved. Adequate funding for
Approach: Supporting the these types of programs will have long-term positive
Business Environment for impacts not only for individuals but also for Canada
Mining in Canada’s North as a whole.
The different levels of government—Aboriginal,

provincial/territorial, and federal—too frequently Addressing Critical
work independently, with little coordination among Infrastructure Gaps
them. Although some work has been done to encourage
greater information sharing, it does not appear to be Mining companies have largely been left to provide their
effective. Legislation or practical arrangements that own infrastructure when operating in remote Northern
encourage information sharing between proponents regions. Aging Northern infrastructure limits commun-
and communities, as well as between various levels of ities and mining companies from taking advantage of the
government, will go a long way in helping to address possibilities offered by resource development. Investments
some of the existing challenges around issues such as to update and construct modern infrastructure would be
the granting of permits, the involvement and participa- helpful to industry, while also greatly benefiting Northern
tion of Aboriginal groups, and duplication of processes. communities. In providing communications, transporta-
tion, and energy infrastructure, governments offer com-
Transparent and open communication between propon- munities opportunities to become self-reliant and more
ents, governments, and communities can provide all resilient. Such critical investments would also put
parties with the tools they require to make informed Northern communities on an equal footing with their
decisions. Communities will better understand which Southern counterparts and allow for greater prosperity
types of opportunities and challenges mining projects in the North.
may provide. A key solution may be to conclude impact
and benefits agreements in a more transparent manner.
This will allow companies to accommodate local resi-
dents’ needs, while giving communities the chance to
fully participate in negotiations by drawing on other 1 In this report, Northerners are defined as those living in the northern
experiences and agreements. extents of the seven provinces and in the three territories.

iv | The Future of Mining in Canada’s North—January 2013
Addressing and Implementing lack of clear and settled land claims agreements. The
Aboriginal Land Claims and settlement of outstanding land claims and resource agree-
Resource Agreements ments would help to clarify roles and responsibilities for
all proponents. This would also create greater stability
Aboriginal rights are a reality that governments and and certainty around resource development going for-
industry must acknowledge and respect. However, sev- ward, while allowing for full and equal participation
eral regulatory issues and overlaps are affected by the in development projects in the future.

Chapter 1
Introduction
C
anada’s North has a long history of mining.
Chapter Summary Mining has created cities that still exist today—
such as Sudbury in Ontario, Thompson in
The future economic growth of the North, and
Manitoba, and Labrador City in Newfoundland and
of Canada as a whole, is dependent on natural
Labrador—and provided jobs and incomes for Northerners.
resource development. Mining is an important
However, the history of mining is also marked by mines
part of that future. However, the potential will
that have closed or been abandoned—creating legacies of
depend on long-term global trends, creating a
environmental problems, struggling communities, and
favourable business environment, and includ-
ghost towns. Today, because of stricter regulations, vol-
ing and collaborating with Northerners and
untary corporate social responsibility programs, increas-
Aboriginal Peoples.
ing recognition of Aboriginal rights, and technological
This report provides a comprehensive analy- innovations, mining is quite different than it once was.
sis of mining in Canada’s North, from early
exploration phases to mine closures. It pro- Canada’s Northern regions will depend on natural
vides insights on what the mining industry, resource development as the main source of growth for
governments, and communities can do to employment and businesses, and for the generation of
ensure that Canada’s Northern mining potential incomes. Mining, in particular, could become a major
is achieved in a way that is environmentally part of that future. This potential will be influenced by
sound and that brings the greatest net benefit several elements, including long-term trends in global
to Northerners. markets and world commodity prices, as well as Canada’s
mining potential and other business factors. It will also
The report combines quantitative analyses
depend on the acceptance of mining development by
with qualitative discussions of the factors that
Aboriginal and other Northern communities and the
should be addressed to ensure the future suc-
measures taken to address environmental impacts.
cess of mining in Canada’s North. The end result
Together, these factors will determine the future of
is an economic outlook for the mining industry
mining development in Canada’s Northern regions.
until 2020, supplemented with a comprehensive
analysis of the challenges and opportunities
faced by the industry and other proponents.

2 | The Future of Mining in Canada’s North—January 2013
Although there is great potential for mining develop- Canada uses different surveys to calculate employment
ment in the North, important steps need to be taken to data in the territories than those used in the provinces,
ensure that this development is carried out in a balanced so the methodology varies slightly.
way. Mining must be approached from a sustainable,
long-term perspective. This report provides a compre- For the three territories, real GDP data (in 2002 dollars),
hensive analysis of all of these elements, from early separated by metal mining and non-metallic mineral
exploration phases through to mine closure, with a focus mining, are available from Statistics Canada. In years
on how they influence sustainable mining development where data were suppressed by Statistics Canada for
in Canada’s North. It also provides insights on what the confidentiality or data quality reasons, the output was
mining industry, governments, and communities can do estimated based on The Conference Board of Canada
to ensure that Canada’s Northern mining potential is calculations of which mines were in production and
achieved in a way that is environmentally sound and how much output they were producing.
that brings the greatest net benefits to Northerners.
There is great potential for mining development in the

Methodology North, but important steps need to be taken to ensure
this development is carried out in a balanced way.
The research for this report included a review of various
data and information sources, as well as 34 interviews.
Thirteen interviewees represented the mining industry. To better understand the local impact that mining can
And, five interviewees were from the service and supply have on communities, this report looks at the number
industry; ten were from federal and provincial/territorial of Northerners1 employed in the mining industry.
governments; and six were Aboriginal and community Employment data for the territories are available
leaders. The data and information sources and the inter- from Statistics Canada’s Labour Force Survey for
views were then analyzed in order to draw insights. An the mining industry as a whole. Employment for metal
advisory group volunteered their time to review the find- and non-metallic mineral mining was calculated by taking
ings, provide comments, and suggest changes. The Centre the output shares of those mining sectors and applying
for the North’s roundtable members also reviewed the them to employment for the whole industry. This assumes
report. All comments and suggestions were considered constant productivity across types of mineral mining—
in finalizing the report; however, the findings, conclu- a sound assumption given that each territory generally
sions, and recommendations are those of the Conference specializes in a particular type of mine.
Board’s Centre for the North.
For the seven provinces with Northern regions, real
To complete a long-term mining outlook that included both GDP (in 2002 dollars) was estimated in two steps. First,
Northern mining output and employment of Northerners 2011 provincial GDP in metal and non-metallic mineral
by region, a database needed to be developed, as some mining was split into North and South, based on esti-
types of data were not readily available. mated mining activity in those regions. Second, metal
and non-metallic mineral mining GDP was estimated
Data regarding the real GDP for the mineral industry using provincial productivity in those sectors and apply-
do not exist for the Northern regions of the provinces. ing that productivity to the Northern employment esti-
Therefore, several assumptions were made in develop- mates. These GDP figures were then scaled up over
ing the historical database and the forecast estimates
used in this analysis. The approach used to build the 1 To better measure the local impact that mining activity can have, this
historical database is different from that used for the report looks only at the number of people residing in the North
and who are employed in the mining industry. The definition of
forecast data. The historical database was built using
Northerners used for this report is based on that of Statistics
employment and provincial productivity data. Statistics Canada’s Labour Force Survey.

The Conference Board of Canada | 3
history to match GDP estimates in 2011. This step was To develop forecasting estimates of mining real GDP
necessary because many people who work in Northern (in 2002 dollars) for each territory and the Northern
mines are actually residents of the South; therefore, region of each province, The Conference Board of
Northern real GDP for the sector would be underesti- Canada compiled a list of Northern mining projects
mated if left unscaled. expected to be in production up until 2020. This list
included mine size and the type of mineral to be mined.
Provincial employment data for the mining industry Assumptions were made as to which projects most
as a whole for Northern economic regions are available likely would be producing output during the forecast
from Statistics Canada’s Labour Force Survey. The total period, based on a variety of industry sources and
Northern mining employment data were calculated by knowledge about regional capacity constraints.
adding together the mining employment of all economic
regions considered to be in Canada’s North. Thus, the forecast is project-based; that is, output
and employment levels are projected by estimating the
The following steps were applied to exclude oil and gas contribution to GDP and employment that each mining
production data. More detailed mining employment data project brings. The mineral production estimates were
(separated by metal and non-metallic mineral mining) gathered from various industry journals, company esti-
are available at the provincial level in the Labour Force mates, and other sources. The mineral production data
Survey. The employment shares in the North for the were then converted to real GDP estimates. In addition,
detailed mining types were estimated based on their employment forecasts by mine operation were derived
share of mining activity taking place in each region in using mining productivity forecasts.
2011. The shares of each type of mining (metal versus
non-metallic mineral mining) were then applied to the
total employment data to estimate Northern employ-
ment by type of mining.

Chapter 2
Canada’s Northern Mining

Potential to the Year 2020
market competing for mining investments and the position
Chapter Summary of Canada’s North in this global supply space. Within this
context, Canada’s Northern mining potential to the year
The successful growth of the Canadian min-
2020 is examined.1 This comparative analysis ultimately
ing industry is tied directly to world markets.
helps to assess the existing potential and the long-term
Projections show that the demand for commod-
forecast of the North’s mining potential.
ities will continue to rise over the long term.
The economic forecast predicts the doubling

of Northern metal and non-metallic mineral Global Markets and Long-
output, from $4.4 billion in 2011–12 to Term Trends
$8.5 billion in 2020.
Following the global economic slowdown of 2008–09,
This chapter includes a detailed forecast of
world markets for mineral commodities rebounded in late
the mining output for the territories and the
2009, continuing a long-term trend of growing demand
northern extents of seven provinces. It also
and surpassing supplies of certain minerals around the
looks at the industry’s local impact by calcu-
world. The imbalance between demand and supply has
lating the number of Northerners employed in
helped fuel commodity prices and exploration investments.
mining. The overall economic impact of the
Although there are still short-term uncertainties from the
growth in mining output will be greater than
outcomes of the ongoing European financial crisis, the
its own increase in real gross domestic prod-
long-term outlook for global metal and non-metallic min-
uct. Estimates forecast the economic impact
eral demand looks very promising. Projections indicate
of mining on related services and industries at
that demand will continue to increase over the long term.2
approximately $9 billion, and the employment
impact at 47,000 people.
Increased long-term demand for mineral commodities is
due especially to rapid industrialization in major devel-
T
oping countries like China, India, and Brazil. This rapid
he future of mining in Canada’s North will
industrialization has been increasing the standard of living
depend on long-term global trends in demand
for mineral commodities and on commodity
prices. However, Canada is only one of many countries 1 The year 2020 was chosen because many mines are set to begin
providing mineral resources to world markets. This production within this time frame.
chapter examines some of the key players in the global 2 Kesler, “Mineral Supply and Demand Into the 21st Century,” 57.

in these countries3 and is leading to the emergence of address these obstacles by constructing transportation
a larger middle class. These populations now have the infrastructure and power generation facilities, as well
income to purchase goods such as appliances and auto- as by providing training and skills development for the
mobiles, electronics, and housing. Recent studies by the labour force.7 These factors are explored in greater
Organisation for Economic Co-operation and Development detail in chapters 3 and 4 of this report.
(OECD) suggest that although Asian countries like China
and India currently account for only about one-quarter However, new and innovative technologies and tech-
of the world’s middle class, that number could increase niques are helping exploration and mining companies
to 40 per cent by 2020. This new and rising middle class overcome some of the geographic barriers. For example,
will no doubt drive the need for new products and the new technologies such as GPS surveying information,
rate of consumption.4 Add the application and use of three-dimensional data maps, airborne technologies, and
new materials to this mix, and “markets for mineral down-hole seismic imaging are “allowing companies
commodities can expand considerably.”5 to locate new deposits not otherwise discoverable with
traditional methods.”8 And this technology has also
allowed for the remote operation of equipment. For
Mining companies must often address obstacles by con- instance, in Australia, an operations centre in Perth
structing transportation infrastructure and by providing allows staff to remotely control operations at a mine
training and skills development for the labour force. in Pilbara, about 1,500 kilometres away.9
This increasing demand and the resulting high commod- A Global Overview of the
ity prices have pushed mining companies to search for new Mining Industry
reserves of mineral deposits. Previously underexplored
and unexplored regions are now being re-examined in a Mining, in some form and to varying degrees, occurs
new light. As a result “mining companies have extended in virtually every region of the world. Several countries
their reach to some of the world’s most precarious regions, are dominant players in the global supply of metals and
including Mongolia, Guinea, the Democratic Republic non-metallic minerals. In particular, Australia remains
of Congo, Mauritania, and Afghanistan.”6 These explor- one of the world’s largest mineral-producing countries
ation operations have extended beyond simply politically and exporters of minerals. It is “ranked among the top
hostile regions into geographically challenging regions. 10 countries in the world in the production of bauxite, coal,
In countries such as Canada and Australia, for example, cobalt, copper, gem and near-gem diamond, gold, iron
mineral exploration for potential deposits is taking ore, lithium, manganese ore, tantalum, and uranium.”10
place in various remote locations. Australia’s mineral reserves are so vast that it is con-
sidered to be entirely self-sufficient with regard to its
But, the remoteness and isolation of exploration and domestic consumption. This wealth of resources allows
new mining sites creates a host of challenges for com- Australia to export a large portion of its mineral pro-
panies. Often, they are confronted with harsh terrain, a duction. As a result, its economy relies significantly on
lack of infrastructure, and in some cases, the lack of a these exports, “accounting for about 50 per cent of the
skilled local labour force. Mining companies must often total value of its exports.”11
7 Ibid., 9–12.
3 Deloitte, Tracking the Trends 2011, 4.
8 The Mining Association of Canada, Facts and Figures 2010, 54.
4 Kharas, The Emerging Middle Class in Developing Countries,
6–8, 28. 9 Deloitte, Tracking the Trends 2011, 10.
5 Kesler, “Mineral Supply and Demand Into the 21st Century.” 10 U.S. Geological Survey (USGS), “Asia and the Pacific,” 1.2.
6 Deloitte, Tracking the Trends 2011, 10. 11 USGS, “Australia,” 3.2.

China, an emerging economy, has significant resources ranked high for investment potential among mining
as well. Not only does it possess many mineral resour- companies. However, many other regions in Africa
ces, but it also invests heavily in foreign industries to continue to struggle with governance issues, including
help feed its ever-growing industrial sector with raw corruption, political instability, and violence. And although
materials.12 China is considered the world’s leading many of these countries possess great resource potential,
producer of many minerals—including aluminum, bis- concerns for safety and stability outweigh any mineral
muth, coal, gold, graphite, iron, rare earths, and zinc, development potential that exists.17
among others. Despite its many resources, China still
imports a significant amount of mineral commodities, The countries that form the European Economic Area
and is viewed as an “export destination of choice.”13 (EEA), as well as parts of Central Eurasia,18 are primar-
ily importers of raw materials for their manufacturing
industries. Many EEA countries are highly dependent on
Although many African countries possess great resource the import of minerals and metals. This does not mean
potential, concerns for safety and stability outweigh any that the region is completely devoid of mineral produc-
mineral development potential that exists. tion. On the contrary, production of gold in Europe and
Central Eurasia made up approximately 16 per cent of
total world production in 2010.19 Many EEA countries
Another notable region for mining investment and pro- are also considerable producers of nickel, copper, zinc,
duction is Latin America. Brazil, Argentina, Chile, and and potash.20 Russia, a large regional and world producer
Mexico are “among the world’s leading producers of of many minerals and metals, has great resource potential
base and precious metals and industrial minerals.”14 In as well. However, the country has had consistent diffi-
fact, in 2009 there were 16 notable exploration projects culties in maintaining production at its mines and finding
under way in Latin America, a sign of the large poten- reserves that could become sustainable operations. Despite
tial that exists in this region. Results from the Annual these difficulties, Russia has recently seen rather intense
Survey of Mining Companies indicate that Colombia’s, exploration activities for precious metals.21 And as demand
Chile’s, and Brazil’s political, economic, and industrial for many metals and non-metallic minerals increases,
climates encourage mining investments; that in many many exploration companies are now moving into the
cases these countries have just begun to discover their Nordic countries. Sweden and Finland, in particular,
potential; and that much more development is likely to have become regions of relatively intense exploration
occur in the near future.15 for precious metals such as gold and silver.22
Many investors are also looking to certain African Mining, in varying degrees, also occurs in the United
countries for potential mineral deposits. According to the States. Mines are in operation in all 50 states, with the
U.S. Geological Survey, “the continent has attracted sig- states of Nevada, Arizona, Utah, Minnesota, and Alaska
nificant investment in mineral development; this invest-
ment was expected to resume flowing to Africa in the 17 McMahon and Cervantes, Fraser Institute Annual Survey of Mining
future. Africa’s mining potential remains significant.”16 Companies 2011/2012, 18. See the results for each question of
the survey.
Several countries, like Burkina Faso and Botswana,
18 The EEA includes the European Union member states, as well as
Iceland, Liechtenstein, and Norway. Central Eurasia encompasses
many countries that were former Soviet republics. See USGS,
12 USGS, “Asia and the Pacific,” 1.1. “Europe and Central Eurasia” (2010), 1.1.
13 USGS, “China,” 9.1. 19 USGS, “Europe and Central Eurasia” (2010 Minerals Yearbook), 1.5.
14 USGS, “Latin America and Canada,” 1.1. 20 Ibid.
15 McMahon and Cervantes, Fraser Institute Annual Survey of Mining 21 USGS, “Countries of the Baltic Region,” 4.16–4.19.
Companies 2011/2012, 26. See the results for each question of
22 USGS, “Europe and Central Eurasia” (2008 Minerals Yearbook,
the survey.
updated in 2010). See Table 3, “Selected Europe and Central
16 USGS, “Africa,” 1.1 Eurasia Exploration Activity in 2010,” for greater detail.

ranked as the country’s top producers.23 The U.S. is one position as an iron ore producer. Canada has the lar-
of the world’s largest producers of beryllium and ranks gest reserves of uranium in the world, found mostly in
third in gold and copper production.24 However, it relies Northern Saskatchewan.30 Gold reserves in Canada
heavily on imports for many minerals and metals.25 The bottomed out in 2004 but have increased since then.
Annual Survey of Mining Companies suggests that while With the rapid rise of gold prices, new gold mines
certain jurisdictions in the United States are favourable have been opening up across Canada’s North.
areas for exploration and production, many challenges
and obstacles prevent and even prohibit further mining
development in others.26 Canada continues to attract investments, but is competing
with developing economies that can produce many of the
same minerals and metals at very competitive rates.
Mining in Canada
How does Canada fit into this world market? Canada has Canada did not have a diamond mining industry until
a long history of mining and continues to be a world the 1990s, when several diamond mines became oper-
leader in this regard. It ranks among “the top five global ational in the Northwest Territories. In 2011, Canada
producers for several major minerals and metals.”27 became the third-largest diamond producer by value in the
Furthermore, Canada is one of the world’s most active world and fourth in terms of production. Other minerals,
mining countries. It is the world’s largest producer of such as chromite in Northern Ontario and rare earth
potash. In 2010, the “country was estimated to rank metals in Northern Quebec, Northern Ontario, Northern
second in the production of uranium and was among the Saskatchewan, and the Northwest Territories offer addi-
top five countries in the production of aluminum, cobalt tional mining potential. Given these types of minerals,
ore, gem-quality diamond, refined indium, nickel ore, mining projects in Canada attracted around 16 per cent
[and] platinum-group metals (PGM, ore, and sulphur).”28 of global investments in 2010.31 And with the prices of
many commodities rebounding that year from the global
Some of Canada’s major metal reserves, such as copper, economic slowdown, exploration activity has spiked.32
nickel, lead, and zinc, have been in decline since the
early 1980s.29 But Canada is still the second-largest The Canadian mining industry is primarily export ori-
producer of nickel in the world, with nickel mines in ented. In 2011, it accounted for 23 per cent of Canada’s
Northern Ontario, Labrador, Northern Manitoba, and overall exports, with much of it destined for the United
Nunavik. Labrador and Northern Quebec have important States.33 Although Canada continues to attract further
iron ore reserves, making this region the third-largest investments, it is also competing with emerging and
producer of iron ore in the world. Large iron ore deposits developing economies that can produce many of the
that have been found in Baffin Island could boost Canada’s same minerals and metals at very competitive rates.34
23 U.S. Department of the Interior and U.S. Geological Survey, Mines play a vital role in sustaining many of Canada’s
Mineral Commodity Summaries 2011. remote, rural, and Northern economies. The Mining
24 National Mining Association, Fast Facts About Minerals. Association of Canada (MAC) estimates that as many
25 U.S. Department of the Interior and U.S. Geological Survey, as 115 communities are dependent on mining activity
Mineral Commodity Summaries 2011.
26 McMahon and Cervantes, Fraser Institute Annual Survey of Mining
30 Natural Resources Canada, About Uranium.
Companies 2011/2012, 14–17, 37.
31 The Mining Association of Canada, Economic Impact.
27 USGS, “Canada,” 5.1.
32 USGS, “Canada,” 5.1.
28 Ibid.
33 Natural Resources Canada, Key Mining Facts 2011.
29 Natural Resources Canada, Canadian Minerals Yearbook
(CMY): 2009. 34 USGS, “Latin America and Canada,” 1.1.

for local wealth and economic development.35 The min- With regard to impacts on labour capacity, Ontario’s
ing industry and companies are also important sources of mineral sector leads all other regions. In 2011, approxi-
employment. According to MAC, jobs in mining account mately 11,155 Northerners were employed in mining
for “one in every 55 Canadian jobs.”36 It further notes: in that province. This number accounted for more than
Of the 308,000 people directly employed by half of all Northerners employed in the Canadian min-
mining in 2010, nearly 53,000 worked in Stage 1, ing industry. Newfoundland and Labrador’s Northern
mineral extraction. This group included over mining industry employed 2,500 Northerners. The rest of
23,000 in metal mining, over 22,000 in non- the industry in Canada’s North hired fewer Northerners,
metal mining and over 7,000 in coal mining.37 ranging from 1,970 employees in Saskatchewan to
175 in Alberta.
Salaries in this sector are also very competitive. An
employee typically earns $1,632 per week.38 And in Exploration activities in these jurisdictions are also
some instances this number may be higher, especially significant. Ontario, Quebec, British Columbia, and
in the Far North where “higher wages help to attract Nunavut were the leading provinces/territory in terms
and keep the required workforce.”39 of mineral exploration expenditures in 2011. Estimates
from Natural Resources Canada for 2012 indicate the
Mining in Canada’s Northern Regions same four regions continue to lead the rest of the prov-
A closer look at the producing mines in Canada in 2011 inces and territories for exploration expenditures, making
reveals that the majority are found in the northern extents up 24 per cent, 19 per cent, 18 per cent, and 10 per cent,
of the seven provinces and three territories. This is due respectively, of total exploration spending in Canada.
in part to Canada’s geological make-up: the Canadian Canada continues to be attractive to foreign investors.
Shield is the largest and oldest geological formation in According to Natural Resources Canada:
the country and stretches from the Northwest Territories Canada continues to be among the world’s most
through to Labrador. A further examination of the primary open countries in terms of trade and investment
mineral mining sector40 by Northern region indicates that flows in mining. There are no noteworthy bar-
Northern Ontario is by far the largest of all regions. In riers in place except for some foreign ownership
2011, mining output accounted for over $1.7 billion of restrictions in uranium, which themselves have
real GDP in the province. The Northwest Territories was been waived in certain instances and which will
in second place with almost half of Ontario’s mining real be waived in instances where reciprocal openness
GDP. (See Table 1.) And the primary mineral mining is seen. … Foreign investment flows—inward
industries in Northern Newfoundland and Labrador and and outward—enhance the access of Canadian
Northern Quebec produced $677 million and $411 million, businesses to new technologies and concepts and
respectively, of real GDP in 2011. As Table 1 shows, these to larger markets and production chains.41
four regions accounted for more than three-quarters of
the total mining output in Canada’s North. This positive attitude toward Canada and its mining poten-
tial is equally reflected for the most part in the Fraser
35 The Mining Association of Canada, Facts and Figures 2010, 9. Institute’s Annual Survey of Mining Companies 2011/2012.
Please note that this total reflects communities across Canada, The majority of jurisdictions that are part of Canada’s
but not specifically Northern communities.
North do quite well in the survey’s Policy Potential Index.
36 The Mining Association of Canada, Facts and Figures of the Alberta, Quebec, Saskatchewan, and Yukon rank among
Canadian Mining Industry 2011, 58.
the top 10 (from a possible 79 jurisdictions).42 Ontario,
37 Ibid.
Newfoundland and Labrador, and Manitoba placed
38 Ibid., 60.
39 Ibid.
41 The Mining Association of Canada, Facts and Figures 2010, 79–80.
40 The primary mineral mining sector includes metal and non-metallic
mineral mining and excludes mineral fuels (including oil sands) and 42 In that year’s survey, New Brunswick ranked first, but it is not part
mining services. It also does not include manufacturing based on of Canada’s North. Quebec’s ranking has declined from first place
mineral commodities. three years ago to fifth place in the current survey.

Table 1
Canada’s Northern Mining Output, Employment of Northerners, and Mineral Exploration Expenditures
by Jurisdiction, 2011
Northern primary mineral Employment of Mineral exploration

mining output Northerners* in primary and deposit appraisal
Jurisdiction (2002 $ millions) mineral mining (000s) expenditures ($ millions)
Newfoundland and Labrador 677 2,516 157
Quebec 411 1,580 834
Ontario 1,667 11,155 1,068
Manitoba 172 322 140
Saskatchewan 190 1,970 335
Alberta 131 175 47
British Columbia 155 1,368 645
Yukon 128 500 332
Northwest Territories 732 1,200 94
Nunavut 165 350 536
Total 4,428 21,136 **4,188
*Northerners are defined as those residing in Canada’s Northern economic regions.

**Does not represent the Canadian total ($4,227 million), which includes the Maritime provinces.
Sources: Natural Resources Canada; Statistics Canada Labour Force Survey; The Conference Board of Canada.
within the top 20.43 On the other hand, British Columbia, over the long term, maintaining the historically high
Nunavut, and the Northwest Territories ranked 31, 36, and prices for many of the metals and leading the search
48, respectively, among 79 jurisdictions. for new reserves.
Canada’s Northern Mining Outlook: 2011–2020 Given the assumptions presented here about continued
As global demand for minerals is set to increase, and strong world demand and supply trends, the long-term
given high levels of exploration activity and historically mining outlook for Canada’s North looks very promis-
high commodity prices, Canada’s North is well positioned ing.44 This forecast assumes that the current business
to increase its mining output over the long term. This environment in the North will be similar throughout the
Northern mining outlook to 2020 examines some of the forecast period, with its present taxation and regulatory
broader trends discussed above and reviews some of regimes and its current trend in addressing the North’s
their key underlying assumptions. In particular, continued infrastructure and skilled labour constraints.
growth in world demand for metal and non-metallic min-
erals over the long term is expected, although the cur- New mines are expected to come into production through-
rent weakness in demand from China and some global out Canada’s Northern regions. Overall Northern metal
economic uncertainty due to the European sovereign and non-metallic mineral output is expected to grow 91 per
debt will persist in the near term. Global constraints on cent from 2011 to 2020, with a compound annual growth
the supply of several mineral commodities will continue rate of 7.5 per cent. Real mining gross domestic product
44 The mining forecast is for its primary sector and does not
include the manufacturing part of primary metals, metal fabricated
43 McMahon and Cervantes, Fraser Institute Annual Survey of Mining products, and non-metallic mineral products. Although part of
Companies 2011/2012, 10. Manitoba was ranked 9 in the last two manufacturing—such as smelting—is found in Canada’s North,
years but dropped to 20 in this year’s survey. many of the manufacturing processes are found in the South.

Chart 1 Chart 2
Canada’s Northern Mining GDP Northern Newfoundland and Labrador’s Mining GDP
(2002 $ millions) (2002 $ millions)
Non-metallic minerals Metals Non-metallic minerals Metals

Forecast Forecast
10,000 1,200
8,000
900
6,000
600
4,000
2,000 300
0 0
2000 02 04 06 08 10 12f 14f 16f 18f 20f 2000 02 04 06 08 10 12f 14f 16f 18f 20f
Source: The Conference Board of Canada. Source: The Conference Board of Canada.
(GDP in 2002 dollars) was $4.4 billion in Canada’s In 2011, there were 21,136 Northerners47 employed in
North in 2011 and is expected to reach $8.5 billion metal and non-metallic mineral mining. Given the expected
in 2020. (See Chart 1.)45 output growth, the sector is expected to experience a net
gain of 16,930 additional jobs by 2020. Over 90 per cent
The projected growth rate for mining output in Canada’s of these additional jobs will be in metal mining. Most
North is very impressive compared with the long-term Northerners involved in the mining industry will be
average growth rate for the Canadian economy over that working in various trades, although about 30 per cent
forecast period.46 The overall economy will expand by will occupy management, professional, and service-
21.5 per cent over 2011–20, for a compound annual related occupations.
growth rate of 2.2 per cent. This economic performance
pales in comparison with the 7.5 per cent compound Newfoundland and Labrador’s Mining Outlook
annual growth rate for Northern mining real gross Northern Newfoundland and Labrador’s mining output
domestic product. will expand by 41 per cent from 2011 to 2020—a com-
pound annual growth rate of 3.9 per cent. Northern
Most of the output growth will come from metal mining mining prospects are strong until 2017, when Voisey’s
production, which is expected to increase by 138 per Bay operations will move underground. (See Chart 2.)
cent over the forecast period. Meanwhile, non-metallic In the medium term, the Iron Ore Company plans to
mineral mining will experience little growth over the increase production of its Labrador City operations from
medium term until 2016, with the opening of Quebec’s 4 million tonnes of ore to 26 million tonnes. There are
Renard and the Northwest Territories’ Gahcho Kué dia- also planned increases in production of the Labrador
mond mines. This growth will mitigate some of the antici- Iron Mines Holdings’ Schefferville area project, and
pated declines in diamond production as the Diavik and the DSO Project of New Millennium Capital and
Ekati mines in the Northwest Territories mature. Tata Steel will ramp up to full production.
47 To better measure the local impact that mining activity can

45 See the Introduction for the methodology of calculating and fore-
have, this report looks only at the number of Northern residents
casting mining output and employment for Canada’s North.
employed in the mining industry. The number of Southern resi-
46 The Conference Board of Canada, Canadian Outlook: Long-Term dents employed in the Northern mining industry has not been
Economic Forecast 2012. included in the analysis.

The Voisey’s Bay nickel mine will shift from open-pit Some of the projects that will contribute to increased
to underground production in the later years of the fore- mineral production over the forecast period include the
cast. Given the impact that this production shift has had Nunavik Nickel copper-nickel mine. Xstrata’s Raglan
on other mines in similar circumstances, a significant mine will also expand its nickel production. In addition,
drop in that mine’s production is expected over 2018– the Mont-Wright iron ore mine is going to increase pro-
20. This will have a net negative impact on Labrador’s duction. Two large mines are expected to open in 2014:
overall mining real gross domestic product. the Eleonore gold mine and the Bloom Lake iron ore
mine. A diamond mine—Stornoway’s Renard Diamond
In 2011, there were 2,516 Northern Newfoundland and Project—is expected to begin production in 2016. This
Labrador residents employed in mining, and by 2015 an will be the first diamond mine in Quebec. Finally, the
additional 1,077 will have jobs in that sector because of smaller Xstrata Bracemac-McLeod zinc and copper
the expansion of iron ore mines. By 2020, there will be mine will open in 2013 and produce for four years.
3,050 Northern Newfoundland and Labrador residents
working in mines, 534 more workers than in 2011.
Mining employment is expected to begin a gradual In Northern Ontario, metal mining production, which was
decline starting in 2016 and will extend over the weak from 2000 to 2010, will increase substantially.
remainder of the forecast period.
Northern Quebec’s Mining Outlook In 2011, there were 1,580 Quebec Northerners
Northern Quebec’s mining output fell from 2008 to employed in mining. This may seem like a small num-
2011 because of the 2008–09 economic recession, the ber given that over 10,000 Quebecers are employed in
exhaustion of reserves in existing mines, and the lack mining in the province. But Statistics Canada’s Labour
of new projects. Going forward, mining production is Force Survey suggests that most of the mining workers
expected to pick up strongly, supported by high min- in the province reside in the South. However, the new
eral prices and increased exploration activity. The aver- mining projects that are projected over the forecast
age annual compound growth rate in mining output period will boost job prospects for Northerners by an
is expected to be 13 per cent over the 2011–20 fore- additional 2,404 positions by 2020. This represents
cast period. more than a doubling of mine workers who will
reside in Northern Quebec.
Chart 3
Northern Quebec’s Mining GDP Northern Ontario’s Mining Outlook
(2002 $ millions) Northern Ontario’s mining output will expand by 66 per
cent from 2011 to 2020 at a compound annual growth
Non-metallic minerals Metals
rate of 5.8 per cent. Metal mining production, which
Forecast
1,500 was weak in the 2000 to 2010 period due to decreasing
1,200 reserves, will increase substantially over the forecast
900 period. (See Chart 4.) This is due to important new min-
600 ing developments. The Detour Lake Project is a new
300
gold mine in northeastern Ontario that will begin pro-
0
duction in 2013. The Cochenour gold mine is antici-
2000 02 04 06 08 10 12f 14f 16f 18f 20f pated to start at the end of 2014. The Hammond Reef
gold project, located near Thunder Bay, Ontario, is
Source: The Conference Board of Canada. expected to become a major gold mine that will start
production by 2016. The Eagle’s Nest project in the
Ring of Fire is a new nickel, copper, gold, platinum,
and palladium mine that is forecast to start production
around 2016.

Chart 4 Chart 5
Northern Ontario’s Mining GDP Northern Manitoba’s Mining GDP

Forecast Forecast
4,000 500
400
3,000
300
2,000
200
1,000 100
0 0
2000 02 04 06 08 10 12f 14f 16f 18f 20f 2000 02 04 06 08 10 12f 14f 16f 18f 20f
Source: The Conference Board of Canada. Source: The Conference Board of Canada.
Other notable projects include Vale Inco’s revived Northerners in Manitoba will benefit from this significant
Totten copper and nickel mine, expected to start pro- mining growth. In 2011, there were 322 Northerners
duction at the end of 2013. The Young-Davidson gold employed in that sector and by 2020, close to 1,000 will
mine will be expanding production over the forecast have mining jobs.
period. However, Ontario’s only diamond mine—De
Beers’ Victor mine—will close in 2019. Overall, a Northern Saskatchewan’s Mining Outlook
number of new mines will provide a bright mining Northern Saskatchewan’s mining real gross domestic
outlook for Northern Ontario. product rose in the early 2000s but then began a down-
ward trend until 2011. However, a solid turnaround is
In 2011, there were 11,155 Northern Ontario residents expected and real mining production will increase over
employed in the mining sector, which is more than half the forecast period, growing from $190 million in 2011
of all Canadian Northerners employed in mining. An to $388 million in 2020—a 100 per cent increase. (See
additional 6,964 Northern Ontario residents will be Chart 6.) The La Ronge Gold project has started and will
employed in the mining sector by 2020 due to the ramp up production over the next few years. Another
growth forecast in metal mining output. gold mine project, Goldfields, is forecast to start pro-
duction in 2014. The new Cigar Lake uranium mine is
Northern Manitoba’s Mining Outlook under development and will begin production in 2013.
While mining output in Northern Manitoba did not
expand in the last decade, it will increase by 157 per In addition to new metal mines, Saskatchewan will have
cent from 2011 to 2020, with a compound annual growth its first diamond mine, which is assumed to begin oper-
rate of 11.1 per cent. (See Chart 5.) However, mining ations in 2017. This will contribute significantly to
output is expected to drop in 2012 due to the shutdown mining output in the outer years of the forecast.
of the Hudbay Minerals’ Trout Lake zinc and copper
mine, which has reached its end of life. Helping to off- There were 1,970 Northern Saskatchewan mining workers
set the losses somewhat, the new Lalor mine has begun in 2011 and with the projected growth in mining output,
production and will continue to ramp up output over the the total number of Northerners in the province working
medium term. The Minago nickel mine project is fore- in the mining sector will increase to 3,537 in 2020.
cast to be developed and to be in production within the
next few years.

Chart 6 Chart 7
Northern Saskatchewan’s Mining GDP Northern British Columbia’s Mining GDP

Forecast Forecast
800 800
600 600
400 400
200
200
0
0
2000 02 04 06 08 10 12f 14f 16f 18f 20f
2000 02 04 06 08 10 12f 14f 16f 18f 20f
Source: The Conference Board of Canada.
Source: The Conference Board of Canada.
mining output. They include the Red Chris copper

Northern Alberta’s Mining Outlook and gold mine and an expansion at the Gibraltar
In 2011, Northern Alberta’s metal and non-metallic copper mine.
mineral real GDP was $131 million and employed
only 171 Northerners. Mining has always been a small It is expected that the Galore Creek gold, silver, and
industry in that province and given that there are no copper mine will start production in 2020, following
major projects planned in the near future, a forecast of the completion of the Northwest Transmission Line
the industry assumed an annual growth rate of 1.5 per in 2014. This transmission line will provide a readily
cent for both real GDP and employment, which roughly available power source, enabling several projects to
reflects historical compound growth rates before be economically viable beyond 2020.48
the recession.
Northern British Columbia’s Mining Outlook Northern British Columbia’s mining output will increase
Northern British Columbia is expected to see the fastest by an impressive 300 per cent between 2011 and 2020,
expansion of mining output out of all the Northern regions with a compound annual growth rate of 17 per cent.
over the forecast period. Starting in 2013, mining pro-
duction will begin a four-year rapid ascent due to the
opening of many new mines. (See Chart 7.) Northern With all of these new mines opening between 2013
British Columbia’s mining output will increase by an and 2020, it is not surprising that employment will
impressive 300 per cent between 2011 and 2020, with shoot up as well. In 2011, there were 1,368 Northern
a compound annual growth rate of 17 per cent. British Columbians employed in mining. By 2020,
4,826 Northern British Columbians are expected to
The Terrane Minerals Corporation’s Mount Milligan be employed in the mining sector—a net gain of
copper and gold project is under construction and will 3,458 jobs.
commence full production in 2014. The Avanti molyb-
denum project is a large mine also forecast to come into Yukon’s Mining Outlook
operation in the next few years. In addition to these large Yukon had very little mining activity from 2000 to 2007,
new mines, other notable projects will start production but the sector has since gained momentum. Yukon’s min-
in the next five years and have an impact on overall ing real gross domestic product was only $26 million in
48 BC Hydro, Northwest Transmission Line Project.

Chart 8 Chart 9
Yukon’s Mining GDP The Northwest Territories’ Mining GDP

Forecast Forecast
300 1,500
250 1,200
200
900
150
100 600
50 300
0 0
2000 02 04 06 08 10 12f 14f 16f 18f 20f 2000 02 04 06 08 10 12f 14f 16f 18f 20f
Sources: Statistics Canada; The Conference Board of Canada. Sources: Statistics Canada; The Conference Board of Canada.
2007 but grew quickly to $128 million by 2011. and then fell to $732 million in 2011 due to a drop in
From 2012 to 2017, mining output will continue to world demand brought about by the recession. (See
grow, reaching about $268 million (see Chart 8), Chart 9.) Diamond output will continue to decline
more than doubling output in five years due to through 2013 as the Diavik mine goes underground and
a number of new mines coming into production. the Ekati mine reduces output in response to low dia-
mond prices. Production at Diavik is expected to pick
The current forecast includes the Eagle Gold project, up again starting with the development of the new A21
which is expected to begin production in a couple of pipe. Furthermore, the Gahcho Kue mine will begin
years; and the Carmacks Copper project, expected to production in 2015 and will mitigate some of the dia-
commence production around the same time. Phase 1 mond output declines.
of the Brewery Creek gold mine is included in the fore-
cast, with production slated for 2014. Minto, Bellekeno, Meanwhile, metal mining output will grow substantially
and Eagle Gold are all expected to boost mining output due to several new metal developments. Three mines will
in the initial years of the forecast but are expected to shut open in 2015: Fortune Minerals’ NICO gold, bismuth,
down or reduce operations in the later years of the long- cobalt project; the Prairie Creek lead, zinc, and silver
term outlook. Still, total production will remain stable project; and the Yellowknife gold project. Meanwhile, the
over the 2017 to 2020 period because of increased Cantung tungsten mine will cease operations. In 2017,
production at the Carmacks copper mine. the territory is expected to begin producing TREOs
(total rare earth oxides) at Nechalacho mine by Thor
In 2011, there were 500 Yukon residents employed in Lake. Overall, the mining industry will reach output
the mining sector. The mining boom will increase min- levels of $1.3 billion over the forecast period.
ing employment in the territory to 1,282 workers in the
later years of the forecast. Northwest Territories residents who work in mining
peaked in 2007 at 2,200 and then fell to 1,200 by 2011.
The Northwest Territories’ Mining Outlook Going forward, losses at diamond mines will be miti-
The Northwest Territories has benefited from the birth gated by new metal and diamond mines over the next
and tremendous surge of the diamond mining industry. few years. Employment will decline to 700 people by
The industry’s output peaked at $1.28 billion in 2007 2014 before increasing to reach 1,322 by 2020.

Economic Impact of Future Mining Output

Chart 10 Growth in Canada’s North
Nunavut’s Mining GDP
The impressive expansion outlined above will make an
(2002 $ millions)
important contribution to the growth of both the Canadian
Non-metallic minerals Metals and Northern economy. In addition to the direct impact on
Forecast these economies, it will also bring additional production
400 in other Northern sectors that will supply mines with
300 equipment, materials, and services. The overall eco-
nomic impact of the growth in mining output will be
200
greater than its own increase in real gross domestic
100 product. What will the total economic impact of the
0 growth in mining activity be?
2000 02 04 06 08 10 12f 14f 16f 18f 20f
Sources: Statistics Canada; The Conference Board of Canada.

For the remainder of the decade, Nunavut’s mining output
will more than double to reach $352 million in 2020—
Nunavut’s Mining Outlook a compound annual growth rate of 8.8 per cent.
Nunavut had no metal or non-metallic mineral mining
output in 2009, but its real mining real GDP increased
to $163 million in 2010 thanks to the opening of the To answer this question, economists usually use models
Meadowbank gold mine. For the remainder of the that help estimate the full impact of new economic activ-
decade, mining output will more than double to reach ity. The Conference Board of Canada established histor-
$352 million in 2020—a compound annual growth rate ical estimates of real GDP for Canada’s North,49 but no
of 8.8 per cent. (See Chart 10.) Although the territory model exists for calculating the GDP for the greater North.
faced some setbacks, due in part to the world economic The key challenge was to estimate the trade flows between
slowdown, mining will be one of the most important Canada’s North and other parts of the world, including
economic drivers in the years ahead. Canada’s South. Four studies related to mining were
examined in order to provide insights on calculating
In addition to the Meadowbank mine, the Meliadine gold factors that can be used to provide a reasonable range
mine is assumed to open in 2017. In the later years of for the total economic impact of additional mining out-
the forecast, the Meadowbank mine will start winding put between 2011 and 2020. These studies also pro-
down production as it approaches the end of its com- vided employment impacts from which indirect and
mercially viable activities. This will have a negative induced job creation factors could be calculated.
impact on overall mining output around the end of the
forecast period. However, these effects will be more The first study reviewed was one the Conference Board
than offset by the opening of the Mary River iron ore conducted for a territorial government. This study pre-
mine. This mine is expected to start production in 2018 sented a few scenarios: one with no new mining activity
and will boost overall mining output in the last two and one with a substantial number of new mines being
years of the forecast. developed and coming into operation. Comparing the
results of these scenarios provided implicit total eco-
In 2011, there were 350 Nunavummiut employed in nomic impact factors for output and employment.
mining. With the new mining activity expected over the
long-term, there will be 790 Nunavummiut working in 49 Palladini, Estimating Economic Activity in Canada’s
the mining sector by 2020, an impressive growth rate. Northern Regions.

The second study reviewed was of a representative mine. low end of the range, an additional 20,000 Northerners
This 2007 study for the Ontario Mining Association will be employed over this period in non-mining busi-
estimated the mine’s full impact, providing local impact nesses that support additional mining output. In the mid-
estimates that were used to calculate total economic dle range, an additional 34,000 will be required. At the
impact factors.50 high end, an impressive 47,000 will have jobs in non-
mining businesses impacted by the growth in mining
The third study was released by the Government of output. The difference between these estimates is due to
Quebec in May 2011.51 This study provided further the variations in Northern jobs that are created to meet
information on the economic impact of provincial the increased level of goods and services that will be
mining activity on the province. produced by Northern businesses. Overall, the total
employment impact of the additional mining output
Finally, the Mining Association of British Columbia ranges between 43,000 and 70,000 Northerners over
released a study in October 2011. This particular study the long-term forecast.
completed by PwC52 provided an economic impact analy-
sis of mining in British Columbia from which estimates Mining Outlook vs. Mining Potential
of total economic impact factors could be derived. in Canada’s North
The mining outlook to 2020 and its total economic impact
estimates assume a “business as usual” situation. That is,
According to the projections in the long-term mining out- the fiscal environment and regulatory regimes and approval
look, 16,930 Northerners will occupy new mining jobs at processes do not change, and the lack of infrastructure and
the end of the 2011 to 2020 forecast period. skilled workers in Canada’s North remain key challenges
for mining companies. This assumes that the business
environment does not improve or deteriorate over the
These four studies were used to derive multiplier factors forecast period. However, if tax rates increase; regula-
that were applied to calculate a range of total economic tory regimes become more cumbersome; or infrastruc-
impact estimates—the direct, indirect, and induced ture and skilled labour challenges are more difficult to
impacts—for Canada’s North. Using these multipliers, resolve than assumed in the forecast, less mining output
the total economic impact on Canada’s North of pro- and fewer jobs will likely result. On the other hand, if
jected additional mining output over the 2011–20 forecast the business environment for the mining industry were to
period will be between $8.3 billion and $10.4 billion. improve significantly, additional mines could be developed
The difference in estimates is mainly attributed to how and production started over or slightly after the forecast
much will be spent on Northern goods and services; not period. In other words, the future of mining depends on
on goods and services imported from the South or other many variables.
parts of the world. These expenditures include miners,
additional workers in these mines, and those in other Furthermore, there is greater mining potential in Canada’s
Northern businesses positively impacted by the growth North than what is presented in the long-term forecast.
in mining. For example, Northern Quebec has future mining pro-
jects in rare earths, lithium, and graphite that have not
According to the projections in the long-term mining been included. The Ring of Fire in Northern Ontario also
outlook, 16,930 Northerners will occupy new mining holds greater potential than what is currently projected.
jobs at the end of the 2011–20 forecast period. At the Similarly, the territories have a number of promising
sites that could be developed over and above those
50 Dungan and Murphy, Ontario Mining. included in the outlook. Important and undeveloped
51 Ministère des Ressources naturelles et de la Faune, Profil des
mineral deposits such as uranium, diamonds, and gold
retombées économiques des activités et des investissements du still remain in various Northern regions of Canada.
secteur minier au Québec.
52 PricewaterhouseCoopers, Economic Impact Analysis.

These examples were not included in the forecast for a where deposits might be the most promising. Furthermore,
variety of reasons. They include competing mining pro- investments in geosciences can be beneficial in many
jects in a miner’s portfolio that take precedence over other areas. Geo-mapping can provide important infor-
those not included in the outlook; significant infrastruc- mation for land use planning purposes—a key component
ture and remote region challenges that cannot be easily in gaining approval for new mining development pro-
overcome; skilled worker shortages that limit the num- jects in many Northern regions. Geosciences can also
ber of new mines that can be developed and come into help plan for important transportation infrastructure
production; significant delays in regulatory approval development as well as identifying energy sources.55
processes; and capacity constraints of regulators that
limit the number of mines that can be reviewed and The federal government has committed $100 million
approved. Most of these factors relate to the business between 2008 and 2013 for geo-mapping the Arctic,
environment. focusing especially on the Northwest Territories and
Nunavut.56 Provinces also offer geological mapping
Yet, the quality and quantity of mineral resources in data for their Northern regions that can be used by
a given region are the fundamental reasons for mining exploration companies. These geosciences programs
activity, whether it is to appraise the resource or develop can reduce the risks and costs undertaken by mining
it. Canada’s North has an abundance of underexplored exploration companies by increasing their chances of
and underdeveloped mineral deposits. According to finding significant, high-quality mineral deposits.
those interviewed for this report, the biggest factor for
future mining development is the vast geological potential. Canada’s northern geological potential is huge and with
They see Canada’s North as an immense, underexplored adequate geosciences programs and exploration activities,
territory, rich in mineral resources. additional large, high-quality mineral deposits are likely
to be discovered. But significant mineral deposits and
But the discovery of important mineral deposits huge geological potential are not in themselves sufficient
requires significant exploration activity. It can take, on conditions for mining development, even with projected
average, 1,000 exploration projects to find a deposit of high commodity prices. The state of the region’s busi-
sufficient quality,53 and even 10,000 projects to find a ness environment, local community acceptance of new
high-quality deposit that is large enough to be mined.54 mining development, and environmental considerations
To this end, governments can help by providing com- play key roles in determining whether projects move
panies with geological maps that provide information on forward. These elements are explored in greater depth
in the following chapters of this report.
53 Cook, The Odds and Opportunities in the Junior Miners.

55 Natural Resources Canada, GEM.
54 Aboriginal Affairs and Northern Development Canada, “Discovery
and Advanced Exploration.” 56 Ibid.

Chapter 3
Business Factors Related

to Mining Development
M
any major mining regions in the world offer
Chapter Summary companies opportunities to invest in new
mines, but the level of capital available for
This chapter examines five critical business fac-
such investments is limited. Mining companies must
tors related to mining development in Canada’s
therefore carefully choose where to invest. They must
North: the corporate fiscal environment; regu-
consider a region’s business environment, in addition to
latory regimes; Aboriginal rights; infrastructure,
its geological potential. Furthermore, a mining project
supply chains, and market access; and attract-
must be economically feasible and offer a reasonable
ing, developing, and retaining skilled workers.
rate of return on investment. If a mining project is too
The tax burden of Canadian jurisdictions is in costly or too time consuming to develop because of
the mid-range when compared internationally. business factors, the project is unlikely to proceed. This
However, Canada’s complex regulatory system chapter examines five critical business factors related to
hinders investment in the mining industry. The mining development in Canada’s North: the corporate
federal and provincial/territorial governments fiscal environment; regulatory regimes; Aboriginal rights;
are taking steps to improve these processes. infrastructure, supply chains, and market access; and
attracting, developing, and retaining skilled workers.
Further progress is required to clarify Aboriginal
While geological potential and global markets are
rights with respect to resource development,
important aspects, the business environment will influ-
through the settling of land claims.
ence the future of Canada’s mining development in a
Aging or non-existent transportation, com- significant way.
munications, and energy infrastructure are
major deterrents for mining investment. The
mining industry must often construct the Corporate Fiscal Environment
infrastructure it requires.
The corporate fiscal environment is an important factor
The mining industry will need to attract and
that mining companies consider in the evaluation of
retain new employees over the next decade as
potential projects. Mining companies pay federal and
skill shortages within the industry become
provincial/territorial corporate income taxes on income
more acute.
net of operating expenses, capital asset depreciation,

and deductions for exploration and development costs. Provinces and territories collect mining taxes and royal-
They also pay provincial/territorial mining taxes and ties, which are economic rents that mining companies
royalties on profits or revenues. Overall, they provide pay to governments for the use of Crown lands and the
much-needed revenue to governments not only directly extraction of mineral resources. Mining taxes and royal-
from corporate income taxes, mining taxes, and royalties in Canada are typically based on a mine’s net revenue
ties, but also indirectly through personal income taxes or profit. Mining tax and royalty rates differ between
paid by mining employees, business taxes paid by sup- jurisdictions. Some jurisdictions, like Manitoba, Quebec,
pliers to mining companies, and personal income taxes and Newfoundland and Labrador, have a flat mining tax
paid by employees of these firms. Governments have a rate, while the three territories have different rates for
lot to gain from mining development. different levels of net revenue.
However, the fiscal burden on mining companies is a cost The overall tax burden for mining companies in Canada
factor that is considered in business investment decisions. therefore varies by province and territory. Given the com-
If it is too high, especially relative to other mining juris- plexity of mining taxes and royalties, comparisons are
dictions, it can deter investments in Northern regions. usually made using a representative mine with assump-
tions about its type of mineral, size, costs, and life. In a
recent PricewaterhouseCoopers study, a hypothetical
Provinces and territories collect mining taxes and royal- gold mine with 2 million ounces of gold is assumed to
ties that mining companies pay to governments for the have a 3-year development phase and 10 years of pro-
use of Crown lands and extraction of mineral resources. duction.2 Based on assumptions such as gold prices and
costs of development and operations, Table 2 provides a
national comparison about the mine’s tax burden. The
In 2011, federal and provincial/territorial corporate table illustrates that Ontario is by far the least taxed juris-
income tax rates in Canada’s Northern regions were diction for the hypothetical gold mine, with an overall tax
between 26.5 per cent in Alberta and British Columbia burden of 29.8 per cent of earnings. Newfoundland and
and 31.5 per cent in Yukon. This range reflects the vari- Labrador has the highest overall tax burden at 41.2 per
ance in provincial/territorial corporate income tax rates. cent. The slight variations in federal taxes shown are due
In 2012, the federal government reduced its corporate to differences in provincial/territorial mining taxes and
income tax rate by 1.5 percentage points,1 easing the royalties that are deductible expenses in the calculation of
corporate tax burden across the country. federal taxable income. Consequently, Ontario has one
of the highest federal tax burdens and Newfoundland
In addition to the usual corporate expense deductions to and Labrador the lowest. Provincial/territorial income
calculate net income for tax purposes, mining compan- and mining taxes, including royalties paid to governments,
ies have additional tax credits and deductions due to the where applicable, are by far the lowest in Ontario of any
high business risks and substantial costs in exploring Canadian jurisdiction, at 13.5 per cent. The highest are
and developing new mines. To help mining companies found in Newfoundland and Labrador, at 26.6 per cent.
raise the necessary financial capital for exploration, tax
incentives in the form of flow-through shares are offered So how does Canada’s tax burden compare globally? A
to investors in order to provide them with an incentive to study done for The Mining Association of Canada and
invest in these risky ventures. The flow-through shares Aboriginal Affairs and Northern Development Canada in
ensure that investors in mining exploration receive some 2008 compared Canadian jurisdictions as well as those
of their money back through tax deduction. This regime in other countries.3 These countries included Australia,
encourages exploration and mine development by pro- Chile, Mexico, Namibia, Peru, South Africa, Sweden,
viding essential capital.
2 PricewaterhouseCoopers, Digging Deeper, 47.
3 Two Ducks Resources, Comparative Review of the Rate of Royalty
1 KPMG, A Guide to Canadian Mining Taxation, 6. in the Canada Mining Regulation, 37–39.

this scenario, Manitoba, Ontario, British Columbia,

Table 2 the Northwest Territories, and Nunavut all have aver-
Tax Burden as Share of Pre-Tax Earnings Over Life of Mine
age effective tax rates around 20 per cent. On the other
(percentage)
hand, the average effective tax rate percentages range
Provincial/ from the mid- to high twenties in the case of Quebec,
Federal tax territorial tax Total tax burden
Newfoundland and Labrador, and Yukon. Alberta and
Ontario 16.3 13.5 29.8 Saskatchewan were not included in the study because
Saskatchewan 16.4 19.1 35.5 of their small to non-existent base metal mining activity.
British Columbia 15.7 21.6 37.3 When a 30 per cent real internal rate of return is assumed,
Northwest Territories 15.8 21.8 37.6 Ontario’s average effective tax rate fares better than the
Nunavut 15.8 22.2 38.0 other provinces and territories. Quebec and Yukon
Manitoba 15.5 23.7 39.2 would have the highest average effective tax rates
Yukon 15.9 24.2 40.1 of all Canadian jurisdictions at around 30 per cent.
Quebec 15.0 25.9 40.9
Newfoundland and This study also compared 11 foreign jurisdictions that
Labrador 14.6 26.6 41.2 have important base metal mining operations.5 Based
Sources: PricewaterhouseCoopers; The Conference Board of Canada.
on the analysis for average effective tax rates, assuming
a 15 per cent real internal rate of return before taxes, the
State of Nevada has the most competitive tax regime,
and the United States. It analyzed the royalties and over- followed by Alaska, which has average effective tax
all tax burden as it would apply to two hypothetical mines: rates similar to Manitoba and Ontario. Chile is another
a medium-sized base metal mine and a large diamond very competitive tax regime for base-metal mining and
mine. Each mine was assumed to have an operating life has an average effective tax rate comparable with British
of fifteen years. Various assumptions as to revenues, Columbia, the Northwest Territories, and Nunavut.
costs, and rates of return were made, and royalty and
income tax rates of the jurisdictions examined were Overall, this study reveals that Canada is as tax com-
applied. The analysis showed that the overall tax burden petitive as other foreign jurisdictions. In fact, it surpassed
of Canadian jurisdictions was in the mid-range of all eight other foreign jurisdictions that were part of the
the jurisdictions analyzed and that they were competi- study. The study also suggests that while Canada’s tax
tive internationally. burden is less than most countries at all rates of return
levels, the differences in average effective tax rates
A similar comparative study was done by Natural diminish significantly when mines have much higher
Resources Canada. It looked at base metal mining, real internal rates of return. In other words, Canada’s
using generic mine models of cash flow yielding differ- tax advantage is more important when mine profitabil-
ent rates of return on investment to calculate average ity is lower. This suggests that Canada better supports
effective tax rates.4 Average effective tax rates are the marginally profitable mines compared with most other
net present value of all taxes paid over the life of a min- countries. This can be an important factor, since the tax
ing project, divided by the net present value of income burden matters most in cases of low-profit mines.
from that mining project over its life. In this study, the
hypothetical mine is assumed to start development in In addition to paying taxes and royalties, mining com-
2012 and start producing in 2016 for a 14-year period. panies must post bonds or deposits before a mine is
The base case assumes a discount rate of 7.5 per cent developed in order to ensure that funds will be available
to calculate net present value and a real internal rate of for the proper reclamation of a mine at the end of its
return before taxes on the investment at 15 per cent. In useful life. These funds can be a few million dollars
4 Natural Resources Canada, “Taxation of Mineral Income 2012.” 5 Ibid.

for a small mine to more than a hundred million dol- Regulatory Regimes
lars for a large mine.6 These bonds or deposits provide
assurances that funds will be available for reclamation According to most interviewees for this report, one of
by the mining company or, if the mine is abandoned, by the most important deterrents to mining development is
governments. According to industry experts interviewed the complexity, duplication, overlap, and time-consuming
for this research, the duplication in the posting of bonds is regulatory regimes in Canada. A mine development can
an area of concern. There are situations where bonds must occur only if all regulatory requirements are met and the
be paid to governments as well as Aboriginal groups, mining company receives the necessary licences and
adding substantial costs to a mining project. This is an permits. The regulatory regime is an important factor
issue that needs to be examined carefully by govern- that determines whether or not a mining company can
ments so that appropriate levels of bonds or deposits and will invest in a development. It can deter investments
are made to the appropriate groups. if the costs and time of meeting the requirements out-
weigh the returns that such investments in a new mine
All in all, even with jurisdictional differences in tax would provide. Mining proposals can be refused by a
burden, Canada has a competitive fiscal environment government if regulatory conditions are not met.
relative to other countries. However, while “Canada’s
tax environment is favourable to business and in particu-
lar to mining activities,”7 governments could be tempted Interviewees reported that important deterrents to mining
to raise taxes, as they will be looking to reduce their development are the complex, duplicate overlapping, and
deficits. Other countries are already increasing their time-consuming regulatory regimes in Canada.
taxes on mining companies.8 The raising of taxes has
already begun here in Canada: the province of Quebec
recently increased its mining taxes. In 2007, Quebec had To be efficient, effective, and fair, a regulatory regime
the lowest tax burden in Canada for mining companies; requires various elements. These include:
today, it has one of the highest in the country. Following regulations that are clearly understandable to all
its mining tax reform, mining taxes are now calculated stakeholders and meet their intended objectives;
on a “mine per mine” basis. Quebec increased its previ- regulatory processes that are coordinated, non-
ous tax rate of 12 per cent9 to 14 per cent on March 31, duplicative, open, transparent, and timely; and
2010, and to 15 per cent on January 1, 2011. The rate was regulatory bodies that have clear mandates and the
further increased to 16 per cent on January 1, 2012.10 capacity to deliver, remain neutral with respect to
While it is too soon to say definitively, these increases economic development, make consistent and pre-
could negatively affect future mining development in dictable decisions, and are accountable for their
the province. Increases in tax burden could become decisions.11
a future concern for mining companies as they make
investment decisions. It would therefore be wise for The regulatory regimes as they apply to mining
federal and provincial/territorial governments to main- development in Canada’s North have made progress in
tain their international tax-competitive position. achieving these objectives over the years, but there is
still significant room for improvement. In particular,
6 Natural Resources Canada, Mining Information Kit for regulatory bodies need to ensure that they maintain
Aboriginal Communities, 78. clearly defined roles and capacity.
7 KPMG, A Guide to Canadian Mining Taxation, 3.
8 Deloitte, Tracking the Trends 2011, 6–7.
9 PricewaterhouseCoopers, Digging Deeper, 36.
10 Ibid. 11 See Section IV of McCrank, Road to Improvement.

An Overview of Regulations Applying of proposed mining projects. Assessments include public

to Mining in Canada’s North consultation as well as detailed technical studies. The
There are many different federal and provincial/territorial issuing of permits to proceed with mining development is
acts that regulate various aspects of mining in Canada’s determined based on the impacts assessed through these
North. According to Canada’s Constitution, the provinces environmental frameworks. Approvals can include con-
are the stewards of natural resources and each jurisdic- ditions that mining companies must meet.
tion maintains its own regulations. The federal govern-
ment regulates natural resources on Indian reserves and In addition to environmental assessments, mining com-
federal Crown lands, as well as aspects of mining activ- panies must comply with a variety of provincial/territorial
ity that relate to the federal jurisdiction. As a result of and federal regulations. Each jurisdiction has its own set
these jurisdictional issues, each province and territory, of regulations. The regulatory conditions as specified in
and the federal government, uses its own environmental provincial/territorial mining acts apply to various min-
assessment act. These legal frameworks are used to ing activities, from staking claims and developing a new
review the environmental and socio-economic impacts mine to mining reclamation. Developing a mine and
Nunavut’s Regulatory Regime

The Nunavut Land Claims Agreement (NLCA) established much for the North Baffin (Qikiqtaaluk Region) and one for Keewatin
of the regulatory regime governing resource development pro- (Kivalliq Region). At present, however, the Nunavut Planning
cess in the territory. The NLCA created the Nunavut Planning Commission has prepared a draft land use plan that would
Commission (NPC), the Nunavut Impact Review Board (NIRB), cover the entire territory and would replace the two existing
the Nunavut Water Board (NWB), and the Nunavut Surface plans.3 Where land use plans for the regions are not yet final-
Rights Tribunal (NSRT). Each of these organizations plays a ized, the project approval process is overlapping the land use
role in reviewing resource development projects as part of the plans process and can make project applications more complex.
regulatory process. Their findings are presented to the federal
Each proposed mining project in Nunavut is referred to the
Minister of Aboriginal Affairs and Northern Development Canada
NIRB to determine and analyze the expected impacts. Any pro-
for the decision as to whether the project can proceed as out-
ject requiring water use (which would typically include all min-
lined. Where the Minister does not approve a project, the find-
ing projects) requires a licence from the NWB. The NSRT was
ings are returned to the original proponent with instructions
established to adjudicate disputes between surface rights hold-
for reconsideration. In some cases, the Minister has authority
ers and mineral rights holders about the terms and conditions
to vary the original findings and issue a decision without fur-
of access to lands for mineral prospecting and development.4
ther consultation.1
The Northwest Territories Water Regulations currently apply to
The NPC is tasked with developing land use plans by region.
Nunavut, although the Nunavut Water Board is developing the
These plans are essential to early involvement by Nunavummiut
Nunavut Water Regulations. The governing legislation and regu-
in the management of their lands and resources. They include
lations require all but residential users of water to have a licence
all the anticipated uses of the lands and are an integral part of
to use surface water or to return water to the environment.
the regulatory review process for resource projects. When a
Licences may be granted directly by the Board, or a public
resource development project is proposed, an application must
hearing may be required, with the resulting licence subject
be filed with the NPC, which then has the responsibility to review
to ministerial approval. Water use requires payment of the
the proposal and make a recommendation on whether or not
appropriate fee as described in the regulations.5
the project is consistent with the land use plan.2 Currently there
are two approved regional land use plans in the territory—one
3 Nunavut Planning Commission, Draft Nunavut Land Use Plan.
1 Indian and Northern Affairs Canada, Exploration and Mining 4 Aboriginal Affairs and Northern Development Canada,
on Crown Lands in Nunavut Guidebook. Nunavut Surface Rights Tribunal.
2 Nunavut Planning Commission, About the Commission. 5 Nunavut Water Board, Legislation.
Sources: Indian and Northern Affairs Canada, Exploration and Mining on Crown Lands in Nunavut; Aboriginal Affairs and Northern
Development Canada, Nunavut Surface Rights Tribunal; Nunavut Planning Commission; Nunavut Water Board.

building related infrastructure can often involve cutting related licences and permits to develop a mine. In recent
trees and therefore also be subject to provincial forest years, governments have taken steps to help mining com-
acts and provincial/territorial land acts that regulate the panies with these multi-faceted regulatory systems.
use of land. Mining operations use and store water and,
therefore, mining companies must meet further regula- Regulatory Processes
tions found in provincial/territorial water acts. The federal To be efficient, effective, and fair, regulatory regimes
government can also be involved if the mining activity must have processes that are coordinated, non-duplicative,
impacts fish habitats. This requires meeting conditions open, transparent, and timely. This has been the most
outlined in the federal Fisheries Act. And if a mine challenging aspect of Canada’s regulatory regimes as
requires transportation infrastructure that will cross they apply to mining. The issues of duplication and
navigable streams, the mining company must meet overlap in the regulatory approval of new mines and the
the regulations within the federal Navigable Waters lack of clear and transparent timelines have been raised
Protection Act. by industry as a major concern.12 Most of those inter-
viewed for this report mentioned this issue. The lack of
Mining companies must also meet the conditions coordination between federal and provincial/territorial
set out in the federal government’s Explosives Act and ministries and agencies, in particular, is a significant
Transportation of Dangerous Goods Act, which regulate part of the problem.
the transportation and storage of explosives used at mines.
Provincial transportation legislation may apply to a mine
development if the mine requires construction on or The multitude of acts, laws, and imbedded regulations,
adjacent to a provincial highway. Mining companies and the required licences and permits, can be a chal-
must also comply with provincial fire services acts due lenge for companies mining in Canada’s North.
to storage of fuel. Additionally, any uranium mining
must meet regulations set out in the federal Nuclear
Safety and Control Act. There are also occupational Because regulatory regimes include both federal and
health and safety acts that have standards to protect provincial/territorial governments, overlapping processes
workers and others that apply to mining. As well, addi- often duplicate the work done by either government. The
tional federal and provincial/territorial environmental timelines to trigger and carry out the review processes
protection acts have their own regulations to protect the often differ, adding to the challenges proponents already
environment, such as air, land, and water, from mining face. Furthermore, there is uncertainty as to the length
activity. A mining company may have to comply with of time it takes to review these proposals and, according
the federal Species at Risk Act and the Migratory Birds to many interviewees, it can be excessive. This makes it
Convention Act if it is likely to have an impact on these difficult for mining companies to plan and can add sub-
animal species. stantial costs to a project.
Clearly, there are many federal and provincial/territorial Over the last decade, federal and provincial/territorial
government agencies and departments that oversee the governments have been working to improve environmental
laws and regulations found in the various legislative assessment processes and their timeliness. Eight out of
frameworks mentioned above. Regulations must be the 10 provincial/territorial jurisdictions that are part of
clearly understandable to all stakeholders and meet Canada’s North—all seven provinces and Yukon—have
their intended objectives. There seems to be no issue environmental cooperative agreements with the federal
in the individual regulatory frameworks in meeting government for environmental assessments. (See Table 3.)
these conditions. However, the multitude of acts, laws, These agreements typically define how the federal and
and imbedded regulations and the required licences provincial/territorial governments can work together in
and permits can be a challenge for mining companies in
particular. Mining companies have to navigate through 12 The Mining Association of Canada, Facts and Figures of the
the complex list of regulations and must have various Canadian Mining Industry 2011, 75.

endorsed it and in 2009 committed to “reducing federal-

Table 3 provincial duplication in environmental assessment, while
Federal/Provincial/Territorial Cooperative Agreements
ensuring high environmental standards are met.”14 A
Jurisdiction Year 2009 Environmental Assessment Task Group formed by
British Columbia 2004 the Canadian Council of Ministers of the Environment
Alberta* 2005 examined specific models with the potential to streamline
Saskatchewan** 2005 environmental assessment processes while still meeting
Manitoba 2007
each jurisdiction’s requirements. They included joint
Ontario 2004
process, delegation, and substitution.15 All three of these
options collect a single set of information to meet the
Quebec 2010
requirements of the environmental assessment of both
Newfoundland and Labrador 2005
levels of government, contrary to coordination, where
Yukon 2004
each jurisdiction collects the information it needs and
*Alberta had an initial agreement with the federal government can share it with the other party. The joint-process model
in 1993 that was renewed in 2005.
**This 2005 agreement builds on the previous one concluded
has one environmental assessment that can meet all of
in 1999. the requirements and that is jointly implemented by both
Source: Canadian Environmental Assessment Agency, jurisdictions. An example would be a joint review panel
Federal-Provincial/Territorial EA Cooperation Agreements.
www.ceaa-acee.gc.ca/default.asp?lang=En&n=CA03020B-1#fp. that conducts the assessment of a project.
conducting their assessments. Provisions include a “Lead The Northwest Territories is the only jurisdiction that does
Party” for each level of government that coordinates its not have a cooperative agreement with the federal gov-
government’s requirements. Information sharing is part ernment or an arrangement similar to Nunavut’s.
of the agreements, to avoid duplication of effort. There is
also a provision for the possibility of having joint review
panels to conduct single cooperative assessments that The Task Group brought forward five key recommenda-
would meet the legal requirements of both governments. tions to support the establishment of a one project, one
assessment approach, as follows:
In addition to these eight jurisdictions, amendments to 1. All jurisdictions should ensure that their statutory
the Nunavut Lands Claims Agreement on June 12, 2008, regimes include a range of models, including joint
established that environmental assessments will be done process, delegation, and substitution, with enough
by the Nunavut Impact Review Board and that a federal flexibility to address any scenario in which these
assessment by the Canadian Environmental Assessment models may be used.
Agency will be carried out only under limited circum- 2. Focused efforts should be made to identify a resolu-
stances. This change has significantly improved environ- tion to issues associated with diffusion of account-
mental assessments within Nunavut.13 The Northwest ability within the current federal framework through
Territories is the only jurisdiction that does not yet have the [then] upcoming Canadian Environmental
a cooperative agreement with the federal government or Assessment Act statutory review.
an arrangement similar to Nunavut’s. 3. The environmental assessment process should
continue to be led by the best-placed jurisdiction,
The “One Project, One Assessment” Approach defined as the “Lead Party.”
Both industry and government agree with the objective
of the “one project, one assessment” approach. The
Canadian Council of Ministers of the Environment 14 Canadian Environmental Assessment Agency, “Use of Federal-
Provincial Cooperation Mechanisms.”
15 One Project–One Assessment Sub-Group of the CCME
13 Aboriginal Affairs and Northern Development Canada, Environmental Assessment Task Group, Potential Models for a One
Amendments to the Nunavut Land Claims Agreement. Project–One Environmental Assessment Approach, 11–16.

4. The level of participation of the Non-Lead Party of major projects. The overall objective is to reduce the
should be based on the nature and magnitude of the time and resources required for regulatory approvals from
anticipated public concern; the nature and magnitude an average of four to two years without sacrificing regu-
of the anticipated/potential environmental impacts; latory objectives such as environmental protection. This
the ability of the Lead Party to deliver on (or federal goal was reiterated in 2012 as part of amend-
address) the Non-Lead Party’s requirements; and the ments to the Canadian Environmental Assessment Act
requirements of Aboriginal consultation processes. (CEAA).18
5. In considering the proposed project against these
factors, both jurisdictions can decide mutually The diffusion of accountability in the current federal
which model would be most appropriate.16 environmental assessment process has also led to major
coordination challenges and delays in the process. In addi-
A key challenge in adopting the one project, one tion, it contributes to a lack of cooperation between federal
assessment approach is the timing of when federal and provincial/territorial governments.19 Amendments
and provincial/territorial assessments are triggered. Any made in 2010 to the Canadian Environmental Assessment
major mining project proposal, for instance, triggers a Act centralized the process of comprehensive environ-
provincial/territorial assessment, given these governments’ mental assessment studies. As a result, the mining indus-
constitutional rights. But a federal assessment is not neces- try has already noticed improvements brought by these
sarily required unless the mining project is subject to the amendments. According to The Mining Association
regulations under federal legislation. It could take as long of Canada:
as 18 months for the federal government to decide whether The change for mining projects is enormous.
or not a federal assessment is required.17 Given that CEAA assessments are being triggered quickly
amount of time, it is rare that federal and provincial/ and, most importantly, at the same time as prov-
territorial governments can coordinate their processes incial assessments. For the first time, provincial
even though cooperative agreements were reached. and federal assessments are synchronized. In
Furthermore, these federal and provincial/territorial addition to eliminating the triggering delay and
cooperative agreements have focused mostly on a the misalignment with provincial processes, the
coordinated approach, while still having each jurisdic- Agency is managing assessments, further elimin-
tion carry out its own environmental assessment in a ating confusion over scope and process, and
cooperative manner. managing consultations.20
Timelines that are too long or unclear in the review Ultimately, no one jurisdiction can decide on the best
of mining proposals can be an impediment to mining model to be used in the assessment of a project. It is
investments without necessarily offering better environ- therefore essential that all parties collaborate in the
mental protection. Unfortunately, this is often the case decision-making process. Coordination is the simplest
in the North. Service standards could be implemented model that both parties can agree to, since both still do
to ensure more timely approvals; such standards would their own environmental assessments. Joint process could
identify the length of time required for each stage of the be a second option that governments could probably agree
review process. This would give project proponents and on, since the jurisdictions are involved together in the
other stakeholders an indication of how long each step
is expected to take. The federal government’s Major 18 The Canadian Environmental Assessment Act was repealed on July
Projects Management Office has established service 6, 2012, and replaced by the Canadian Environmental Assessment
standards with target timelines in the federal review Act, 2012.
19 One Project–One Assessment Sub-Group of the CCME
Environmental Assessment Task Group, Potential Models for
16 Canadian Council of Ministers of the Environment, Backgrounder. a One Project–One Environmental Assessment Approach, 7.
17 The Mining Association of Canada, Submission by The Mining 20 The Mining Association of Canada, Submission by The Mining
Association of Canada to the Standing Committee on Environment Association of Canada to the Standing Committee on Environment
and Sustainable Development, 2. and Sustainable Development, 2.

environmental assessment, such as through joint review given the projected growth of mining development pro-
panels. It becomes more difficult, however, for both posals across all of Canada’s North. Ensuring that regu-
parties to agree on delegation and substitution, since latory bodies have the capacity to do their jobs properly
these involve only the jurisdiction most capable of must be a key goal of all levels of government.
carrying out the assessment. This requires a high level
of trust between parties and the elimination of institu- High turnover rates of personnel in regulatory bodies can
tional resistance—constraints that have proven difficult also create problems in the administration and enforce-
to overcome. ment of regulations. Some of those interviewed for this
report mentioned that the turnover rate at all levels of
Regulatory Body Capacity government is problematic in getting new mining pro-
Numerous factors are required for regulatory bodies to jects approved and adds more time to the regulatory
work effectively. They must have clear mandates and process. While some turnover is expected, it would be
the capacity to deliver the required services. They must wise for governments and regulatory bodies to ensure
also be able to remain neutral with respect to economic adequate training, mentoring, and other knowledge
development, make consistent and predictable decisions, transfer mechanisms so that new recruits can quickly
and be accountable for their decisions. A lack of clear assume their responsibilities and make the regulatory
mandates and capacity, however, creates challenges for processes seamless.
regulatory bodies, co-management boards, and Aboriginal
governments in meeting the various requirements of
regulatory regimes. Regulatory bodies must remain neutral with respect to
economic development, make consistent and predictable
The situation in the Northwest Territories serves as an decisions, and be accountable for their decisions.
example to illustrate this point. Regulatory boards in
this territory do not always have clear mandates by fed-
eral and territorial governments. This is because compre- Combining capacity building with service standards can
hensive land claims agreements do not properly define go a long way in ensuring effective regulatory boards.
the roles and responsibilities of these regulatory bodies. Having adequate numbers of qualified and well-trained
The issue has not yet been rectified by current legislation board members and staff would help ensure that these
or policy.21 Furthermore, there are too many regulatory boards are neutral with respect to economic develop-
boards in the territory and members lack proper orientation ment; make consistent and predictable decisions; and
and training, which make it difficult to ensure that there have enough resources to provide, in a timely manner,
is no bias in favour of or against resource development.22 regulatory decisions on the many mining proposals
they must review.
Regulatory capacity is also a key issue in Nunavut. The
regulatory bodies are resource constrained, and some Addressing Regulatory Challenges
interviewees mentioned that investments into building In recent years, the federal government has been active
that capacity are required. This is especially important as in addressing problems in its own regulatory processes.
the system could soon be overwhelmed by the numerous The Major Projects Management Office (MPMO) was
mining development projects advancing in the territory. established in 2007 within Natural Resources Canada
The review processes absorb many resources, and could to improve the coordination and integration of federal
result in even longer process timelines should there con- major resource project evaluations, licensing, and permit-
tinue to be a lack of adequate resources. This challenge ting, south of the 60th parallel. According to the MPMO:
will also likely be felt in many other Northern jurisdictions, [It] serves as a single window into the federal
regulatory process, and complements the tech-
nical discussions between proponents and regu-
21 McCrank, Road to Improvement, 7. lators. The Office provides guidance to project
22 Ibid., 59. proponents and other stakeholders, coordinates

project agreements and timelines between federal further improve the federal regulatory approval process
departments and agencies, and tracks and mon- and the application of federal and provincial/territorial
itors the progression of major resource projects cooperative agreements—but the agencies will be required
through the federal regulatory review process.23 to have adequate capacity to carry out their mandates.
However, the CEAA will continue to play a limited
Since the MPMO opened, greater transparency has to non-existent role in Nunavut and the Northwest
taken place with inter-departmental project review Territories.25 As mentioned previously, Nunavut has its
agreements and tracking of regulatory processes. Some own unique environmental assessment process, while the
progress has been made on time taken for federal regu- Northwest Territories is governed under the MacKenzie
latory project reviews, but there is still substantial room Valley Resource Management Act (MVRMA). This legis-
for improvement. lation is currently under review by the federal government.
Overall, the federal government has been taking important

In April 2012, the federal government announced that it steps toward the one project, one assessment goal. These
will reduce, from 40 to 3, the number of departments and steps should lead to greater cooperation and coordina-
agencies that conduct environmental reviews. tion between the federal government and provincial/
territorial governments. To be full and equal partici-
pants in decision-making, Aboriginal governments
In September 2009, the federal government also estab- are another layer that will require capacity building
lished the Northern Projects Management Office (NPMO) and coordination and cooperation with other levels
as part of the Canadian Northern Economic Development of government.
Agency (CanNor). The NPMO carries out functions sim-
ilar to those of the MPMO for proposed projects north
of the 60th parallel. In addition to working with federal Aboriginal Rights
departments and regulators, it partners with territorial
governments to improve the coordination and com- The recognition of Aboriginal and treaty rights is now
munication of regulatory approval processes between a major part of the review of mining project proposals.
levels of government. It is still too early to establish the Given the close proximity of mineral exploration activ-
impact this organization will have on regulatory review ities and mining operations to Aboriginal communities
effectiveness and timeliness. and that mining activities may take place on Crown
lands used by Aboriginal Peoples for traditional, cul-
As another step forward, the federal government tural, and spiritual activities, Aboriginal engagement in
announced in April 2012 that it will reduce from 40 to the review of mining proposals has become a requirement.
3 the number of departments and agencies that conduct According to Natural Resources Canada, there are about
environmental reviews.24 In the case of non-uranium 1,200 Aboriginal communities within 200 kilometres of
mining, only the Canadian Environmental Assessment mining activities.26
Agency will now be responsible for carrying out fed-
eral environmental assessments. The Nuclear Safety Prior to the 1970s, Aboriginal Peoples were not involved
Commission will review uranium mining proposals. As in the decision-making around mining development near
well, the 2012 omnibus Bill C-38 amends the Canadian or on their ancestral lands.27 Significant Supreme Court
Environmental Agency Act to permit greater use of sub- of Canada decisions and associated events since the early
stitution of provincial environmental assessments for
federal assessments. These recent developments will 25 Aboriginal Affairs and Northern Development Canada,
Amendments to the Nunavut Land Claims Agreement.
26 Natural Resources Canada, Aboriginal Participation in Mining:
23 Major Projects Management Office, About MPMO. Mining Development.
24 CBC News, “Ottawa to Slash Environment Review Role.” 27 Hipwell and others, Aboriginal Peoples and Mining in Canada, 4.

1970s, however, have paved the way to the legal duty of including Northern Quebec (1975), Inuvialuit (1984),
governments to consult Aboriginal Peoples when govern- Nunavut (1993), and Labrador (2005).32 There are also
ment decisions may infringe on Aboriginal and treaty 11 First Nations Yukon agreements; and three First Nations
rights. This duty cannot be delegated to either industry have yet to ratify proposed agreements. In addition to
or a regulatory tribunal,28 although some procedural the Inuvialuit Agreement, the Northwest Territories has
elements can. For environmental assessments of a min- three other comprehensive lands claim agreements with
ing project, governments request that project developers First Nations and Métis peoples. In British Columbia,
consult with affected Aboriginal communities as part of there is the Nisga’a Final Agreement (2000), and in
the consultation process. Even when a regulatory agency Quebec, the Eeyou Marine Region Land Claims
is involved, the Crown retains ultimate responsibility Agreement (2010).
to determine whether adequate consultation has taken
place.29 The duty is to consult in a meaningful way and
accommodate Aboriginal communities where possible. As they explore for deposits, plan to develop new mines,
However, it does not provide Aboriginal Peoples with and operate and close existing ones, mining companies
approval authority or veto rights.30 must recognize Aboriginal rights.
Aboriginal rights have become a reality that mining

companies must recognize as they explore for deposits, There are still significant regions in British Columbia
plan to develop new mines, and operate and close exist- and the Northwest Territories that are not covered by
ing ones. Yet further progress is required on the clarity either historical treaties or comprehensive land claims
of Aboriginal rights with respect to resource development agreements. Yukon and Labrador also have some regions
and in the review of mining project proposals. Unsettled that still need modern-day treaties. Successfully com-
land claims and specific Aboriginal grievances are other pleting negotiations for outstanding Aboriginal land
issues that governments must resolve. Some of the inter- claims is essential to clarify the nature and extent of
viewees for this report mentioned that mining proposal the duty to consult.
reviews are sometimes used by Aboriginal groups to
pressure governments to take action of these grievances. Comprehensive land claims agreements—also known
It was also noted that it becomes difficult to negotiate as modern-day treaties—usually include financial com-
with Aboriginal groups when—because of overlapping pensation, land ownership (both surface and subsurface),
land claims that have not been settled—more than one participation in resource management, traditional land
nation claims the geographic area proposed for the use (e.g., hunting, fishing, and trapping), protection of
new mine. Aboriginal culture and the environment, and promotion of
economic development. They also create public boards
Overall, 24 comprehensive land claims agreements of governance that share resource management between
have been settled,31 of which 22 are in Canada’s North. government and Aboriginal groups. Many of these also
(See Exhibit 1.) The James Bay and Northern Quebec have terms for self-government.
Agreement reached in 1975 was the first comprehensive
land claims agreement, or modern-day treaty. It was fol- Self-government agreements “provide greater certainty
lowed in 1978 by the Northeastern Quebec Agreement. over rights to natural resources, contributing to a more
All four Inuit regions of Canada have modern-day treaties, positive investment climate and creating greater poten-
tial for economic development, jobs and growth.”33 By
28 Ceballos, “Supreme Court of Canada Clarifies ‘Duty to Consult.’”

32 Inuit Tuttarvingat, “Economic Development.” Additionally, the
29 Devlin, Crown Delegation and the Duty to Consult, 17.
Nunavik Inuit Lands Claim Agreement for Quebec and Labrador
30 Aboriginal Affairs and Northern Development Canada, Aboriginal Inuit was concluded in 2008.
Consultation and Accommodation, 18.
33 Aboriginal Affairs and Northern Development Canada, Fact Sheet:
31 Land Claims Agreements Coalition, “Modern Treaties.” Aboriginal Self-Government.

Exhibit 1
Historical and Modern-Day Aboriginal Treaties in Canada
Inuvialuit
Final Agreement
(1984)
Gwich’in Comprehensive
Land Claim Agreement
(1992)
Nunavut
Sahtu Dene and Land Claims
Métis Comprehensive Agreement
Land Claim Agreement (1993)
(1993)
Tlicho Land Claims and

Self-Government Agreement
(2003) Nunavik Inuit
Land Claims Agreement
Yukon Umbrella (2006)
Final Agreement
(1995–2006) Labrador Inuit
Land Claims Agreement
(2003)
Treaty 11
Nisga’a (1921)
Final Agreement James Bay and
(2000) Northern Quebec Agreement
(1975)
Treaty 8
(1899) Adhesion
Tsawwassen
Final Agreement (1908)
(2009)
(1889) Treaty 5
Treaty 6 (1875) Adhesion
(1876) (1929–30)
Vancouver Island Treaty 9

Pre-Confederation Treaties (1905)
Treaty 3
(1850–54)
(1873)
Treaty 10
(1906) Treaty 7
Treaty 4 Treaty 1
(1877) Treaty 2
(1874) (1871)
(1871)
Williams Treaty
(1923)
Historical Treaties Robinson-Superior Treaty
Pre-Confederation treaties (Province of Canada, 1850) Peace and Friendship Treaties
Robinson-Huron Treaty (1725–79)
Post-Confederation treaties Treaty adhesion Upper Canada Treaties
(Province of Canada, 1850)
(1764–1836)
Modern Treaties Manitoulin Island Treaty
Modern treaties (Province of Canada, 1862)
Sources: Aboriginal Affairs and Northern Development Canada; Natural Resources Canada.
late 2010, there were 16 self-government agreements than 390 communities represented at 83 tables were
related to comprehensive land claims and 2 comprehen- at different stages of negotiating self-government
sive self-government agreements with the Sechelt and agreements.35
Westbank First Nations in British Columbia.34 More
34 Aboriginal Affairs and Northern Development Canada, Fact Sheet: 35 Aboriginal Affairs and Northern Development Canada,
Implementation of Final Agreements. Negotiation Tables.

Comprehensive land claims settlements and Aboriginal environmental legislation and relies on the NLCA for
governments with agreements concerning natural resource the application of environmental assessments. However,
rights, along with management with federal and provincial/ it is still negotiating devolution of land and resource
territorial governments, can provide greater clarity for management from the federal government. Yukon, on
mining companies than situations where these rights and the other hand, achieved this transfer of responsibility in
co-management arrangements are not clearly defined. 2003. It also has the Final Umbrella Agreement between
These are very important steps that can benefit not only its First Nations and the Yukon, and federal governments,
Aboriginal communities but also mining companies. simplifying the regulatory process, since it does not
differ between Yukon’s regions.37 Included in the Final
But there are important implementation challenges with Umbrella Agreement were provisions that formed the
land claims and self-government agreements as they Yukon Environmental and Socio-Economic Assessment
relate to mining project proposal reviews. One of the Act (YESAA), which looks at the impacts potential
key issues is the lack of adequate human resources and projects may have in the territory. It is a single assess-
training for land management and environmental assessment process for all projects and applies to all levels
ment boards or committees. This leads to inadequate of government.38
capacity in reviewing mining project proposals in a
timely and effective way. (See page 26, “Regulatory The Northwest Territories faces tremendous challenges.
Body Capacity.”) Comprehensive land claims agreements led to the creation
of several parallel or duplicate land and water regulatory
boards to specifically meet the needs of each Aboriginal
There are federal and provincial/territorial cooperative land claimant through the Gwich’in Land & Water Board,
environmental assessment agreements, but there needs Sahtu, and Wekhee’zhi groups, and the MacKenzie Valley
to be such agreements with Aboriginal governments. Land and Water Board for the unsettled claim areas.
Consequently, the Northwest Territories has a very
complex regulatory regime.39 Furthermore, the transfer
Another challenge can be the lack of clarity around the of resource management responsibility from the federal
respective involvement of the three levels of governments government is still being negotiated. Mining and explor-
(federal, provincial/territorial, Aboriginal) in regulatory ation companies have complained about the Northwest
processes. Aboriginal governments can have overlap- Territories’ regulatory process and view the Yukon sys-
ping regulatory mandates with federal and provincial/ tem as more efficient and timely.40 The federal govern-
territorial governments. This can add complexity and ment has started discussions on merging the Northwest
amount of time taken in the overall regulatory review Territories’ regulatory boards into a single board,41
and approval processes of mining projects. While there a move that has found little favour with some
are federal and provincial/territorial cooperative environ- Aboriginal groups.42
mental assessment agreements as discussed above,
there need to be such agreements with Aboriginal
governments.36 37 McCrank, Road to Improvement, 35.
38 Yukon Environmental and Socio-Economic Assessment Board,
A comparison of the three territories reveals important Frequently Asked Questions.
differences regarding regulatory regimes and Aboriginal 39 McCrank, Road to Improvement, 7–12.
governments. Currently, Nunavut does not have its own 40 Wilson, “Regulatory Headaches Continue for Northern Miners.”
41 CBC News, “Feds to Start Talks on Merging N.W.T.
Regulatory Boards.”
36 In 2000, the federal government reached such an agreement with
the Environmental Impact Review Board (EIRB) for the Inuvialuit 42 World News, “NWT Aboriginals Oppose Feds’ Plan to Streamline
Settlement Region. Approvals for Resource Development.”

Infrastructure, Supply Chains,

and Market Access Ontario’s Mining and Far North Acts
In 2009, to ensure greater protection of Aboriginal and land owner rights, Ontario
In addition to fiscal and regulatory regimes that impact amended its Mining Act to change the way that companies stake and explore their
mining development, essential infrastructure is a key fac- claims. Some regulations were implemented on January 1, 2011, while others will
be phased-in over the next few years. The Act identifies various sector strategies,
tor in mining investment decisions. A mine cannot exist
such as online map staking to acquire mining claims, and allows sites of Aboriginal
without the necessary infrastructure to transport equip- cultural significance to be withdrawn from prospecting and staking. Aboriginal
ment, supplies, and workers to the mine site; commodities consultations are required for exploration plans and permits are needed for early
to market; and workers back to their home communities. exploration activity. Further amendments in November 2012 ensure that prospect-
A mining operation also requires energy to power the ors may earn assessment credits toward their claim by demonstrating through
facilities and equipment. It needs a communication infra- their consultation expenses that they have been working with Aboriginal com-
munities.1 In addition, a plan to introduce a graduated permitting system would
structure to reach out to head office, logistics operators,
require submitted exploration plans for low-impact activities and permits for
suppliers, and customers. Mine workers need accommo- moderate-impact activities. The Act also stipulates that there will be no new
dation, food, and fresh water, as well as health services mine openings in the “Far North” of Ontario without community-based approval
and recreational activities. Community infrastructure of a land use plan unless the project is socially and economically beneficial
such as education, health care, catering, housing, and for Ontario.2
recreation in close proximity to a mining operation can In 2010, the Ontario government passed Bill 191, known as the Far North Act.
benefit mining development. This section examines the The Act recognizes Aboriginal rights and supports community-based land use
state of that infrastructure in Canada’s North and explores planning for the province’s Far North, which includes the Hudson Bay lowlands.
the ways in which such infrastructure can be developed (See Exhibit.) It aims to protect areas of cultural value and maintain biological
diversity and ecological functions. Furthermore, changes to the Mining Act have
and financed.
put in place rules concerning land use plans in the Far North. No new mines
will be allowed to open unless the community has and is implementing a land
Transportation Infrastructure use plan. The plans must be made and approved by the community. Four
Needs and Gaps communities have already approved land use plans.3
In Canada’s North, the lack of adequate transportation
infrastructure is one of the greatest obstacles to mining Ontario’s Far North
development. Most of the interviewees mentioned the
lack of transportation infrastructure as a key impediment
to mining development. Mining projects require different MANITOBA Peawanuck
infrastructure supports at different stages. In the early Attawapiskat
exploration stage, infrastructure needs are relatively FAR NORTH ONTARIO QUEBEC
modest. The ability to establish a base near the region Pickle Lake Moonsonee
to be explored is important. This base must have the

necessary living space and provisions for workers and Kenora
Timmins
Thunder Bay
limited equipment. Transportation access for workers
at the camp and the required supplies is therefore a key
requirement but requires little infrastructure. In most Peterborough
circumstances where mineral exploration is conducted

in remote regions, workers and supplies are flown in by
aircraft or transported by vehicles using temporary roads.
Source: Ministry of Natural Resources.

As a project proceeds through development and becomes
an operating mine, the transportation infrastructure
requirements expand. Depending on where the mine is 1 Ontario Ministry of Northern Development and Mines, Assessment Work Credits.
located, the required infrastructure can include marine 2 Ontario Ministry of Natural Resources, Far North Act, 2010.
shipping and road or rail access to bring equipment 3 Ontario Ministry of Natural Resources, Far North Ontario.
and supplies into the mine site and ship commodities

Quebec, major roads connect the cities of Radisson,

Infrastructure Impediments at Meadowbank Mine Matagami, Normetal, and Chibougamau to Val d’Or
The lack of infrastructure significantly slowed down the and the Saguenay region with highways to southern
development of the Meadowbank gold mine in Nunavut. destinations. Similar road systems exist in Ontario,
To service the mine, which is situated 70 kilometres north Manitoba, Saskatchewan, Yukon, and portions of the
of Baker Lake, Agnico-Eagle built eight major buildings, a
Northwest Territories.
truck shop, a diesel-powered electricity generation plant
(26 MW) with a cogeneration heating distribution system,
and diesel storage tanks.1 The company also needed to pro- However, road infrastructure across the North is not
vide water purification, waste management, and water recyc- always available. Companies in remote locations must
ling infrastructure and a landing site for barges. Equipment usually build and use winter or all-weather gravel roads to
and supplies for mine construction were transported pri- access main road systems or ports. Winter roads limit the
marily by water. Somewhat uniquely for Nunavut, Agnico-
time of year that supplies and equipment can be brought
Eagle also constructed a 110 kilometre all-weather road
from Baker Lake to the mine,2 over which fuel and other
in and minerals can be shipped out by surface transporta-
supplies are trucked on a weekly basis, as well as an air- tion. Furthermore, climate change is reducing the amount
strip to bring in supplies and workers by airplane. In addi- of time that winter roads can be used. As most new min-
tion, because the mine has only seasonal access for bulk ing developments occur in remote regions, it is expected
commodities like fuel, the company had to build extra stor- that companies will increasingly rely on winter roads or
age for an entire year’s inventory, further adding to capital
all-season gravel roads for transportation to and from
costs. The Meadowbank gold mine is an example of some
of the infrastructure challenges that mining companies
mine sites.
may face when they plan to develop a new mine in the
remote regions of Canada’s North.
The available transportation infrastructure, the cost of
1 Hatch, “Arctic Conditions a Challenge for Meadowbank Mine.” new infrastructure, and the shipping distance to market,
are critical determinants of mining economics.
2 Agnico-Eagle Mines Limited, 2011 Annual Report, 54.
to market. In cases where mining workers live in com- Another option companies consider for transporting
munities close by, road access between communities bulk commodities like coal, iron, and base metals is
and the mine can be built. In cases of remote mines, rail infrastructure. In 2010, over 700 thousand carloads
air transportation is a requirement to fly workers in of minerals out of a total of over 3.6 million freight
and out. The available transportation infrastructure, the carloads were transported by rail.43 Rail transportation
cost of new infrastructure required, and the shipping crosses the country from east to west and into the United
distance to market are critical determinants of mining States, with a few railway lines stretching into Canada’s
economics. Some transportation infrastructure invest- North. The rail network is used primarily to transport
ment is inevitable when working in remote regions, but natural resource commodities to ports and to manufactur-
extensive new infrastructure can create a cost burden ing plants in the South. Part of this rail network is rela-
sufficient to delay or prevent mine development. tively close to mines and is used to transport minerals.
For example, a rail line from Schefferville, Quebec, and
Canada’s road transportation network was developed Wabush, Labrador, brings iron ore to the port in Sept-Iles.
primarily around and between major urban centres located
in the South. There are over 1 million kilometres of roads, In addition to existing railroads, there are proposed
but few extend into Northern regions. Some all-weather rail lines, such as the one to service the Ring of Fire in
roads connect northern cities to the main southern high- Ontario’s Far North. Cliffs Natural Resources has pro-
way system, and mining companies use some of these. posed a railway line and service road to link CN’s rail
For instance, a major road connects Happy Valley-Goose
Bay and Labrador City to Baie Comeau, Quebec. Within 43 Railway Association of Canada, 2011 Rail Trends, 20.

system to the chromite mining projects at McFaulds will move forward, greater investments in the necessary
Lake;44 and a rail line has been proposed on Baffin infrastructure need to be considered. Government assist-
Island to eventually transport the territory’s major iron ance or partnerships between companies and governments
ore minerals to port. However, because they remain vul- can help relieve the financial burden of construction.
nerable to changes in permafrost, railways may not be These types of investments will also serve to make
an option for some of Canada’s more remote regions.45 investment in Northern regions more attractive.
Railway construction must be studied carefully to ensure
it is a cost-effective and reliable form of transportation. Energy Infrastructure: Needs and Gaps
Some of those interviewed for this report noted that
As an alternative, when surface transportation is impos- energy supply, particularly power generation, is another
sible or too costly, marine transportation may be a viable key infrastructure requirement and key impediment to
option for remote mines in Canada’s North. Marine trans- mining development in remote regions. So how will
portation could serve to bring in equipment and supplies companies power their operations if this required infra-
to mining facilities from the South and to ship minerals structure is not readily available—if available at all—in
to southern processing and manufacturing plants. The many regions where future operations will take place?
future Mary River iron ore mine on Baffin Island will lead
to the development of a new port to ship iron to market
and receive supplies. Unfortunately, marine transportation Air transportation is currently used to transport workers
is at the mercy of sea ice. The shipping season can be as and supplies to remote mining facilities. It is expensive,
short as one month or as long as five months, depending but can be the only option available to bring workers,
on the location of the port,46 and ships travelling in Arctic food, and goods to remote Northern mines.
waters need to be ice capable. However, climate change
could increase the length of time waterways remain free
from ice, allowing for longer shipping seasons. For some new mines, local utilities will provide power
if the new mine is close to the power grid and the utility
Air transportation is currently used to transport workers has enough load capacity, or if the utility is willing to
and supplies to remote mining facilities. It is an expen- invest in new infrastructure with the support of provin-
sive mode of transportation but can be the only option cial/territorial governments. In British Columbia, eight
available to bring workers, food, and goods to remote metal mines use BC Hydro power,47 and completion of
Northern mines. A mining company can build and oper- the Northwest Transmission Line in 2014 will provide
ate its own airstrip close to the mine when no other air power to new mines in that part of the province. Hydro-
transportation is available nearby. This is the case at all Québec is studying plans to provide power to new
the diamond mines, the Meadowbank gold mine, and mines under Quebec’s northern development plan.
the Raglan mine. It will also be the case at virtually
all the new mines proposed in Nunavut and the The proposed Growth Plan for Northern Ontario 2009
Northwest Territories. and 2011 identifies the need to develop opportunities for
power generation across Northern Ontario. By expand-
While a few cities have well-established transportation ing the existing power generation network, the province
infrastructure to support the mining industry, companies hopes to increase the amount of renewable energy being
usually have to build their own transportation infrastruc- generated. The Plan also looks at the potential for other
ture to develop and operate in the North. Given that trans- sources of energy, and providing remote, off-grid com-
portation plays a vital role in determining whether a project munities with alternatives to diesel fuel. Alternatives
include the development of wind energy along lakes
44 Cliffs Natural Resources Inc., Cliffs Chromite Project, 18.

45 Bristow and Gill, Northern Assets, 13.
46 Ibid., 13. 47 Mining Association of British Columbia, “Mining in BC.”

Superior and Huron and the development of biofuels.48 Musselwhite gold mining operation in Northern Ontario
These developments could provide mining companies has turned to solar power to help heat its buildings.52
with the power required to sustain any new mining These renewable resource projects can help reduce
operations in Northern Ontario. costs while contributing to the development of more
sustainable operations across the North.
New mines in remote regions often require their own
power generation facility because electric utilities are Other Infrastructure Needs and Gaps
unable to meet their needs. It is not unusual for a mining Like transportation and energy, telecommunications
company to install and maintain a power plant on a remote infrastructure in remote Northern regions can be a chal-
mining site. For example, the Raglan mine in Nunavik lenge. Mining operations close to well-established towns
in Northern Quebec depends on its own diesel-powered usually have access to existing telecommunications net-
plant because it is too far north of Hydro-Québec’s power works, but remote mines must invest in their own. They
grid. All mines in the Northwest Territories and Nunavut usually rely on satellite communications or microwave
also rely on their own power supply, and the Meadowbank towers to connect to the outside world. The three dia-
gold mine in Nunavut relies on its own diesel-powered mond mines in the Northwest Territories used satellite
plant. The use of diesel, however, incurs additional communications for years until they collectively sup-
costs and considerations for companies, such as fuel ported Northwestel’s installation of a series of micro-
storage and equipment efficiency. Relying on this par- wave towers to link them to the telecommunications
ticular type of power generation can add substantial network in the South.53 Telesat will invest in improving
costs to a project. broadband satellite communication in the Territories,54
improving communication services used by mining
companies in the Arctic region. Part of Quebec’s north-
Mining operations close to well-established towns usually ern development plan is to invest in telecommunications
have access to existing telecommunications networks, infrastructure in northern parts of the province. This
but remote mines must invest in their own. will help to address current gaps to better serve
Northern communities and businesses.55
Energy costs are a major expense for mining operations, Access to broadband has become a necessity in mining
representing on average 15 per cent and 22 per cent, operations, and additional infrastructure to provide this
respectively, of total operating costs for metal mining service is required. At least part of the investment in
and non-metal mining.49 In the case of remote mines, broadband infrastructure will need to be made by min-
energy costs can be substantially higher.50 To decrease ing companies. Communications companies with the
costs, some companies are turning to renewable energy support of governments, however, could extend reliable
sources. In one such case, Diavik Diamond Mine in the broadband communications services in Northern regions
Northwest Territories is building a wind farm with tech- where new mines will be developed.
nology that can operate in minus 40 degrees Celsius. Wind
power is expected to reduce diesel energy used by the Aside from larger infrastructure projects, more basic
diamond mine by 10 per cent.51 Likewise, Goldcorp’s infrastructure like housing, fresh water, health care,
and recreational facilities are required. While mine sites
48 Ontario Ministry of Energy and Infrastructure and Ontario Ministry located in close proximity to established communities
of Northern Development, Proposed Growth Plan for Northern
Ontario, 15–16.
49 These percentages are based on data provided in The Mining
52 Goldcorp Inc., “Environmental Stewardship, Energy.”
Association of Canada’s Facts and Figures of the Canadian Mining
Industry 2011. 53 Hoefer, Mining in Nunavut, 25.
50 Standing Committee on Aboriginal Affairs and Northern 54 CBC News, “Telesat to Spend $40 Million to Expand Broadband
Development, Northerners’ Perspectives for Prosperity, 29–33. in Arctic.”
51 Bouw, “Miners Turn to Renewable Energy to Cut Costs.” 55 Government of Quebec, Plan Nord.

can access some of their services, these types of projects Northern Development and Mines) invested $648 million
can also place additional strain on already limited local in northern highway rehabilitation and expansion, along
resources. Financial and material support from mining with $54 million in passenger transportation services and
companies and governments can ease this burden. commercial rail programs.57 The Growth Plan for Northern
Infrastructure projects that not only support the mine Ontario, 2011 also recognized the importance of infra-
but also benefit the community can help bring accept- structure support and calls for coordinated, strategic
ance of a mining project. On the other hand, remote infrastructure investments; a multi-modal transportation
mining sites do not benefit from established local infra- system in the province’s North; education infrastructure;
structure. Companies must therefore construct and information and communication technology infrastruc-
provide most of these services for their employees. ture; and energy infrastructure.58
Financing Infrastructure Public investments in community infrastructure are

It is clear that there are major transportation, energy, sometimes in response to additional mining activity.
and other infrastructure gaps that must be addressed In one particular example, the Ontario government
if new mining developments are to proceed in remote committed funds to upgrade Kirkland Lake’s roads and
regions of Canada’s North. But the costs can be pro- water infrastructures to meet the needs of its growing
hibitive, as project costs are substantially higher in population due to increasing employment in mines.59
Northern regions than in the South.56 Difficult terrain, Communities can also benefit when power companies
harsh weather conditions, and the high cost of skilled invest in generation and transmission lines for the pur-
labour and materials are all factors that significantly pose of mining development. This is the case with BC
increase the capital and maintenance expenses of infra- Hydro’s Northwest Transmission Line.
structures associated with remote Northern mines. But
who should be responsible for financing and maintaining Some of the infrastructure necessary for mining, such as
this infrastructure? transportation, energy, and communications, can meet
the needs of both mining operations and the commun-
Frequently, mining companies end up paying for the ities in which mines operate. Furthermore, new mining
required infrastructures when new remote mines are projects can add additional jobs for Northerners, support
developed. They fund the construction and maintenance local businesses, and provide royalty and tax revenues
of roads, power generation stations, and other infrastruc- to governments. Overall, there are social benefits and
tures. These costs factor into the economics of mining additional government revenues from mining development
projects and their returns on investments. High commod- that can justify government financial support of necessary
ity prices can make remote Northern mines financially infrastructure investments for mining. Infrastructure
viable despite high infrastructure costs. Nevertheless, investments can occur through public-private partner-
these costs can tip corporate investment decisions toward ships. Such public-private arrangements must be care-
other regions or countries that are more financially attract- fully defined and implemented so that all parties clearly
ive and offer promising mining development alternatives. understand the allocation of risks, costs, and benefits.
Sometimes Crown corporations and governments invest

in northern infrastructure projects to serve communities 57 Ontario Ministry of Northern Development and Mines, Annual
that can also sometimes meet, at least indirectly, mining Report 2009–2010.
needs. For example, the Ontario Ministry of Northern 58 Ontario Ministry of Infrastructure and Ontario Ministry of Northern
Development, Mines and Forestry (now the Ministry of Developement, Mines and Forestry, Places to Grow: Growth Plan
for Northern Ontario 2011.
59 Ontario Ministry of Northern Development and Mines, Improving
56 Bristow and Gill, Northern Assets, 2. Municipal Infrastructure in Kirkland Lake.

Attracting, Developing, and Retaining cent of the mining industry’s current labour force62 is
Skilled Workers between the ages of 45 and 64 years.63 Companies will
be struggling to keep pace with these demographic
In addition to infrastructure gaps, mining companies often changes, as “on average, over a third of [the current
face challenges in attracting, developing, and retaining workforce] will be eligible to retire in the next five
skilled workers for their remote mines. However, mining years, with the largest proportion eligible in three
companies worldwide will soon be scrambling to find to five years.”64
workers to meet the industry’s requirements, as skilled
workers are becoming increasingly difficult to find Attracting and retaining skilled workers will be a chal-
while demands for metal and non-metallic minerals are lenge for the industry in a future world of scarce human
expected to increase. Adding to this ongoing challenge, resources. The industry has been able to attract foreign
the industry must also work to fill the void left by retir- talent to fill some of these current employment gaps,
ing workers. One of the biggest threats to growth of the but global competition for skilled labour will intensify.
mining industry is the limited available workforce that “As talent becomes scarce, competing employers or
will lead to a global competition for talent. According industries make more attractive offers and the best and
to a 2011 Ernst & Young report, skills shortages were brightest tend to become more mobile.”65 Global com-
seen to be the second-greatest risk to the global mining petition for skilled labour will result in the scarcity
industry.60 Canada is not immune to that risk. of candidates.
The industry has thus far been able to cope with human
resource challenges, but future trends will put additional In addition to infrastructure gaps, mining companies
pressure on current human resources. More intensive often face challenges in attracting, developing, and
recruitment and retention strategies will be required retaining skilled workers for their remote mines.
for mining companies to find the needed workforce
to operate existing mines and develop new ones. This
section will look at current labour force trends and chal- Furthermore, according to the long-term forecast
lenges in Canada’s mining sector and discuss potential developed for this report (see Chapter 2), metal and
solutions to future labour force shortages. non-metallic mineral output in Canada’s North will
grow by 91per cent by 2020. This growth in mining
Current Human Resource Trends production will be possible only by hiring a significant
and Challenges number of additional workers. But where will this work-
Many industries in Canada are coping with the upcom- force come from? Based on this report’s long-term fore-
ing retirement of Canada’s baby boom generation. The cast, an additional 16,930 Northerners will be needed to
mining industry is no exception. The Mining Industry meet the growth in metal and non-metallic mineral mining
Human Resources Council’s (MiHR) latest employment output between 2011 and 2020. This number assumes
and hiring forecasts state that an aging workforce is one that the proportion of Northerners employed in mining
of several major human resource challenges for mining
companies. Their report notes that hiring will have diffi-
culty keeping pace with the number of workers retiring:
62 This applies to both Northern and Southern Canada, as well as to
“Retirement rates will therefore have a major impact on
the larger definition of mining, which includes activities such as
hiring requirements in the near future.”61 Nearly 30 per smelting and refining. These activities have not been included in
the scope of this report.
63 Mining Industry Human Resources Council, Canadian Mining
60 Ernst & Young, Business Risks Facing Mining and Metals
Industry Employment and Hiring Forecasts 2010, 20–21.
2011–2012, 12.
64 Ibid.
Industry Employment and Hiring Forecasts 2010, 20–21. 65 Ibid., 16.

remains the same as it is currently. However, this pro- Filling the Retirement Void
portion could certainly increase if current labour force Given the large pool of retirees over the next few years,
constraints in many Northern regions, such as the lack mining companies can take advantage of mature work-
of skilled workers, can be addressed. ers’ knowledge and expertise as those workers prepare
to leave the workforce. Senior employees will have a
On average, Aboriginal workers account for a larger role to play when it comes to mentoring and preparing
share of the workforce in mining than in other indus- younger workers for advancement in the industry. Many
tries. In terms of labour force participation, Aboriginal employers have mentoring programs that pair more
people account for nearly 7 per cent of mining workers— experienced workers with younger ones. This allows for
more than double the national average for Aboriginal knowledge transfer between employees and helps fill
people in the overall workforce (slightly above 3 per some of the gaps left by retiring workers. The MiHR
cent).66 However, the potential to hire more Aboriginal has even recommended that retired workers take on
people in mining is significant given their younger aver- some of the training and development activities the
age age than the national population and the growth in industry offers, thus ensuring “an extended knowledge
Canadian mining that will occur near Northern Aboriginal transfer and mentoring of younger workers after the
communities. But many Aboriginal people lack the edu- mature workers retire.”68
cation and training to meet the skill requirements of
many positions available within the industry.67 Attracting New Talent
In addition to having upcoming retiring workers mentor
and train younger mining workers, attracting new talent
Women in Mining Canada’s study demonstrated that from previously under-represented sectors can provide
exploration and mining lack women, and that the number an additional pool of labour. A 2010 study by Women
of women who enter this field annually remains low. in Mining Canada demonstrated that women are lacking
in exploration and mining, and that the number of
women who enter this field annually remains low. The
Under-represented groups in mining, such as women, number also remains well below other resource sectors
youth, and new Canadians, could also be a potential talent such as oil and gas, hunting and fishing, and forestry.
pool from which mining companies could draw. However,
there have been considerable difficulties in getting such A key reason for the low female participation rate in
groups to participate in the mining workforce. Significant mining is women’s perception of the industry; it is still
efforts by mining companies and governments will be a male-dominated sector with very few female role
required to fill those jobs left behind by retirees and to models. As well, work within the industry is still often
meet the requirements of the growing mining industry. viewed as “extremely physical work within a noisy,
It will require encouraging more Aboriginal people and dirty and harmful environment.”69 A survey of female
under-represented groups to go into mining jobs. employees done by Women in Mining identified things
like inflexible work arrangements that do not suit moth-
There are a number of human resource strategies that ers, child care, and parental leave practices as barriers
mining companies are using, and will need to undertake, to women in the industry. Travel to and from remote
over the coming years to fill their labour force needs. mining sites can also be barriers for women, especially
those who work on rotation and have children.70 Taken
together, these working conditions can prevent women

Industry Employment and Hiring Forecasts 2010, 25. These num-
Industry Employment and Hiring Forecasts 2010, 21.
bers are not limited to mining operations in Northern Canada.
69 Women in Mining Canada, Ramp-Up, 10.
67 Howard, Edge, and Watt, Understanding the Value, Challenges, and
Opportunities of Engaging Métis, Inuit, and First Nations Workers, 4. 70 Ibid., 13.

from choosing mining as a career option, or force them present the greatest source of potential workers, since
to leave the sector entirely.71 The study recommends they represent a large pool of untapped human resources
that more work be undertaken to better accommodate and, as discussed below, future mines will be located
families and retain female workers, while looking for near Aboriginal communities.
ways to improve its image. Such changes would result
in making mining more appealing to women as a In addition to providing career training and initiatives to
career choice. help students succeed and follow a path to post-secondary
education, the mining industry needs to work on improv-
Youth also present an opportunity to help meet future ing its image among youth, who still view it as “a ‘dirty,’
labour force needs. However, research suggests that ‘unhealthy’ and physically demanding industry.”76 By
youth aren’t aware of the various types of careers— continually reaching out to youth while they are still in
such as engineers, geologists, human resource profes- high school and promoting the variety of careers avail-
sionals, and trades—offered within the industry. Youth’s able within the industry, mining companies will connect
perceptions of the mining industry were very similar with youth. Interviewees for this report noted that mining
to those expressed by women. As well, young adults companies need to go into high schools, inform students
are frequently approached too late in their education of the skills needed for all types of jobs, and encourage
to consider careers in the field. Youth also find the them to finish their high school and pursue paths to post-
remote work locations and the lifestyle associated secondary education. Larger companies such as Diavik
with the industry unappealing, and recruitment is provide summer job opportunities for students,77 while
not aimed at youth’s interests or behaviours.72 Agnico-Eagle offers scholarships for students looking
to go on to university.78 Many other mining companies
Both these groups represent a rich source of labour have also offered scholarships for students.
potential for the mining industry over the coming dec-
ade. While the overall labour force participation rate
of women aged 25 to 44 stands at 82.1 per cent,73 they The mining industry could aim for a larger percentage of
make up only around only 4 per cent of workers in the youth working in the sector, especially as it offers high-
mining industry.74 This offers mining companies a huge income jobs with many future openings.
opportunity to further promote mining careers to women.
Youth represented 12.7 per cent of the mining workforce Local educational institutions and governments need to
and 15 per cent of the total workforce in Canada, accord- work cooperatively with companies to encourage youth
ing to the 2006 Census.75 The mining industry could to pursue college and trades training related to mining
close that gap and even aim for a larger percentage of jobs, as this is not frequently considered by students as a
youth working in the sector, especially as it offers high- potential career option. Hands-on training, work place-
income jobs with many future openings. Aboriginal youth ments, and especially mentorship programs, may be
excellent options to reach out to this particular group.
Yukon College is presently studying the feasibility of
71 Women in Mining Canada, Ramp-Up, 25. such a program. The Centre for Northern Innovation
72 Mining Industry Human Resources Council, Take Action for in Mining (CNIM) would provide training in mining-
Diversity, 24–27. related activities, technologies, and research. Through
73 Statistics Canada, Table 282-002. Numbers are from 2011. The
overall rate refers to all of Canada.
76 Mining Industry Human Resources Council, Take Action
74 Natural Resources Canada, Canadian Minerals (CMY) Yearbook:
for Diversity, 25.
2008, Section 6.
77 Diavik Diamond Mine, Building Northern Communities.
75 Statistics Canada, Labour Force Indicators by Age Groups for Both
Sexes, 2006 Counts. 78 Agnico-Eagle Mines Limited, Corporate Responsibility.

partnerships between the college, the government, However, a recent Conference Board of Canada report
and industry, CNIM would help the territory prepare on Northern labour force capacity explores the difficul-
a young workforce for a career in mining.79 ties employers face in recruiting skilled labour for open
positions. According to the report, “ … communities
Corporations are also making greater efforts to reach are facing the paradox of businesses operating in their
out to new Canadians. New Canadians are often highly communities with many job openings, but having a
skilled in fields related to mining, but many are unaware population that is not able to take advantage of these
of potential employment in the field. They also have had opportunities.”83 Particularly affected by this paradox
difficulty receiving accreditation for prior work and/or are Aboriginal Canadians:
training experiences and have come up against other Mining companies have said that the main barriers
barriers, such as language or the geographic location inhibiting Aboriginal Peoples from participating
of some of the mines. New Canadians have mentioned in the industry are related to lack of experience,
that companies’ organizational policies don’t always inadequate education and training, and the asso-
respond to the various cultural backgrounds of new ciated training costs [for those] who are often
employees, and the lack of diversity within the company’s not in possession of the required basic skills.84
management can deter some potential applicants.80 To
attract new Canadians to this industry, proponents must This is largely due to the fact that in some regions, such
work together to improve accreditation and help facilitate as Nunavut, students do not always complete their high
the immigration process for workers and their families. school education or move on to post-secondary educa-
New Canadians also felt that awareness training and lan- tion. Although graduation rates can vary widely across
guage training to help them familiarize themselves with the North, one-third to one-half of 25- to 64-year-olds
Canadian mining terminology would be very helpful.81 do not have a high school diploma.85 In Nunavut, only
25 per cent of Inuit students graduate from high school.86
Increasing Aboriginal Participation Many Northern students do not complete high school
Mining companies are struggling to find qualified skilled for a variety of reasons, including family and social
labour within Northern communities. Geographically problems, lack of appropriate educational supports, and
speaking, many Aboriginal communities find themselves poor attendance.87 And when they do graduate, they
at an advantage, as they are frequently located very near find that their education is not on par with that of their
to exploration and mining projects. (See Exhibit 2.) The Southern counterparts: “Northerners are leaving high
Aboriginal population in Northern Canada is also very school without the skills necessary to transition smoothly
young. In Northern Saskatchewan and Nunavut, for into post-secondary schooling.”88 Many Aboriginal
instance, 34 per cent of that population is under the Canadians therefore lack the basic qualifications to
age of 15, while in the Northwest Territories, 24 per find work in the mines.
cent is in this same age bracket.82 With the number
of large new mining projects, Aboriginal communities To help address this, it is standard procedure now for
are well positioned to take advantage of the opportun- communities to require companies to negotiate impact
ities they offer. benefit agreements (IBA) with communities before mine
construction begins. Frequently these agreements include
79 Yukon College, Centre for Northern Innovation in Mining (CNIM)

Draft Phase One Feasibility Study. 83 Martin, Building Labour Force Capacity in Canada’s North, 1–2.
80 Mining Industry Human Resources Council, Take Action for 84 Mining Industry Human Resources Council, Mining Industry
Diversity, 17–19. Human Resources Guide for Aboriginal Communities, 3.
81 Ibid. 85 Sisco and others, Lessons Learned, 5–6.
82 The Conference Board of Canada, Kids These Days and From the 86 Ibid., 9.
Beginning. See also Howard, Edge, and Watt, Understanding the
87 Ibid., 11–17.
Value, Challenges, and Opportunities of Engaging Métis, Inuit, and
First Nations Workers, 3–5. 88 Ibid., 19.

Exhibit 2
Aboriginal Communities and Mining Projects
Legend
Coal mines
Industrial mineral mines
Metal mines and mills
100 active exploration sites
Aboriginal communities
Sources: Mining Industry Human Resources Council; Natural Resources Canada.
requirements for local employment, provision of servi- low skill levels and limited work experience can hinder
ces, and scholarship funding. However, low educational Aboriginal workers from fully participating in the
attainment levels can greatly limit the community’s abil- labour force.89
ity to take advantage of these provisions. Interviewees
stated that they lack of an educated workforce is one of This situation makes it very difficult for Northerners
the greatest impediments to the industry’s ability to hire to access much of the training offered or enter college
workers locally. A recent Conference Board report on programs.90 Recognizing this, many colleges in the North
engaging Aboriginal workers also supports this view. have begun to offer preparatory programs. Nunavut Arctic
Employers interviewed for the report stated that both
89 Howard, Edge, and Watt, Understanding the Value, Challenges, and
Opportunities of Engaging Métis, Inuit, and First Nations Workers, 14.
90 Sisco and others, Lessons Learned, 4–5, 19.

College provides learners with the opportunity not only Hazelton in Northern British Columbia, the program has
to finish their high school diploma, but also to take part been successful and will be expanded cross-country.96
in several trades preparation programs. These particular Interviewees also cited the Mine Training Society in the
programs give students the chance to learn more about Northwest Territories as an excellent example of worker
the trades programs being offered in the territory and training programs. They have had great success in pro-
provide pathways to apprenticeships and work in the viding local Aboriginal populations with the training
local mining industry.91 needed to be employed in the diamond mining industry.
The Youth in Mining program (YIM) in Nunavut aims to Quebec’s mining industry works closely with Aboriginal
engage youth in mining by providing them with hands- communities to ensure labour participation in the sector.
on training, including spending time on-site at Nunavut To prepare for the anticipated shortage of mining workers,
Arctic College and Agnico-Eagle’s Meadowbank mine. the Government of Quebec outlined a plan to enhance
The program helps break down some of the barriers education and training, promote employment in the sec-
between young people and the industry, while exposing tor, and provide support for worker adaptation. It also
them to career options such as the trades.92 The company plans to create the Mining Employment Partnership with
had been sending heavy equipment trainees to southern industry partners, Emploi-Québec and the Ministère des
locations for training,93 but recently purchased, and located Ressources naturelles et de la Faune to promote jobs
at the mine site, a computerized training simulator that within the mining sector, especially in Aboriginal com-
allows workers to train on heavy equipment closer to home munities. In addition, through Géologie Québec, the
and in a classroom situation. Other mining companies in government offers Aboriginal youth internships with
the North have also provided similar training programs. geological mapping teams to expose Aboriginal youth to
The Meadowbank gold mine has had a significant impact the jobs in the mining sector.97 The province’s northern
on local employment, reducing the unemployment rate development plan will develop sector-specific training
in Baker Lake from 40 per cent to just 4.5 per cent by aimed at business needs and make occupational training
employing 180 Inuit workers (of a total of 499 workers) more widely available in the northern part of the prov-
in the mine.94 ince. Distance training will also be made available for
residents of the province too far away to attend work-
As well, numerous training programs provide skills shops in person.
training to Aboriginal adults, making them work ready.
For instance, the Mining Essentials Work Readiness
Training Program for Aboriginal Peoples aims to pro- Although many challenges currently limit the participation
vide Aboriginal Canadians with the skills to make them of Aboriginal peoples, mining companies and the industry
job ready over the course of 12 weeks. The program have done much to ensure their inclusion in projects.
consists of hands-on training, classroom study, and site
visits. It is delivered in the community and organized
in conjunction with local colleges and training schools, All levels of government, communities, and industry
mines, and the Aboriginal community itself.95 Piloted have a role to play in increasing the rate of Aboriginal
in Thunder Bay and Kenora in Northern Ontario and participation in this particular sector. Although signifi-
cant gains have been made, training needs to continue
to target Aboriginal populations specifically. Education
91 Nunavut Arctic College, Trades Access.
92 Kivalliq Mine Training Society, Programs and Applications.
96 Canadian Institute of Mining, Metallurgy and Petroleum,
93 Agnico-Eagle Mines Limited, Measuring Up.
HR Outlook.
94 Ibid., 26.
97 Ministère des Ressources naturelles et de la Faune,
95 Mining Industry Human Resources Council, Mining Essentials. Preparing the Future of Quebéc’s Mineral Sector, 43.

and training opportunities need to be supported on an and dynamics. Greater child care options within com-
ongoing basis. This practice alone will contribute to munities could provide a solution for mothers who have
increasing the number of skilled labourers in the North. to leave to work at mining sites. The proverb “It takes a
village to raise a child” could inspire a way forward to
Furthermore, Aboriginal communities need to see help mothers who can and want to work in mining.
Aboriginal mining employees—especially in the higher
levels of management.98 Some interviewees stressed the There are many ways that governments at all levels can
need to move Aboriginal employees into supervisory work together with mining companies to help overcome
and managerial roles within the company, as it helps some of the obstacles potential recruits see in the indus-
encourage entry-level employees and provides them try. In terms of bringing new Canadians on board, it is
with career role models. Diavik created an Aboriginal essential that the federal government work to recognize
development program to help in this regard. The pro- the credentials of foreign workers. As well, joint part-
gram provides 160 hours of leadership training and nerships between governments and companies to ensure
mentoring for Aboriginal workers to ensure they have integration and assist workers with everything from the
greater opportunities within the company.99 application process to learning new terminology would
help workers better understand the industry. For young
Addressing Labour Force Capacity Issues Canadians, greater, targeted outreach in high schools,
Besides Aboriginal Peoples, companies could draw from and programs that highlight career options in the min-
other sources of labour in the future. New Canadians, ing fields, would certainly help break down many of the
women, and youth are under-represented within the misconceptions young people have about the industry,
industry, but could make up a larger share of its work- while at the same time broadening their career horizons.
force. However, much work needs to be done to address
the image and perception many of these groups have of Aboriginal Canadians can be an important and valuable
the mining industry. By demonstrating greater flexibility source of labour in the years to come. Although many
with regard to worker integration and work schedules, challenges currently limit their participation, mining
and showcasing the many career options available, companies and the industry as a whole have done much
mining companies have a greater chance of successfully to ensure Aboriginal inclusion in projects. Programs that
recruiting and retaining new employees from these groups. provide work preparedness training, skills upgrading, and
trades training have had positive impacts on communities.
Women would especially benefit from more flexible The ongoing funding by federal and provincial/territorial
work arrangements that are less taxing on mothers and governments of programs like mine training societies
families. Rotation schedules are hard on family cohesion will continue to ensure that Aboriginal Canadians can
participate fully in the local labour force.
98 Mining Industry Human Resources Council, Take Action for
Diversity, 11–13.
99 Diavik Diamond Mine, Building Northern Communities.

Chapter 4
Impacts and Benefits of Mining

for Northern Communities
life. Aboriginal people want to ensure that mining can
Chapter Summary coexist with their traditional ways of life such as hunt-
ing, fishing, and trapping. There are also concerns that
Mining companies must take the time to
economic development from new mines will impact
develop and maintain positive relationships
social cohesion in communities and create social
with Aboriginal and Northern communities. This
problems. These concerns are often real and must
is key to ensuring that relationships are mutually
be addressed.
beneficial for industry and communities.
Timely, open, and transparent communica- By working together and supporting each others’ efforts,
tions are vital for community engagement in communities and industry can achieve this important
the development process. Consultations must balance. This requires engaging and accommodating,
begin early on in project development. to the extent possible, local communities that will be
affected by mining development. Mining projects in
Impact and benefit agreements are important
Northern regions today have difficulties proceeding
mechanisms: they ensure that communities
without the support of local communities—particularly
receive benefits from mining projects in and
Aboriginal communities.
around their communities by covering aspects
such as employment, business development,
In addition to consulting and negotiating with com-
skills development, and training.
munities, mining companies and governments need to
Concrete actions to counter negative impacts demystify their mining activities. This includes provid-
associated with mining projects are needed, ing Northerners with adequate and factual informa-
and must be supported by leaders at all levels tion about mining projects. Concerted and meaningful
to improve net benefits for communities. efforts are also needed to alleviate community concerns
and respond to community needs as best and as timely
as possible. Establishing a good relationship with com-
N
ortherners ultimately hope to benefit from munities at the outset of mining projects is crucial. It
mining activity through well-paying jobs, can help build solid trust between industry and com-
support for local businesses, and the develop- munities, with the potential to bridge the gap that
ment of vibrant and healthy communities. They are, often exists between the two parties.
however, concerned about the potential impacts min-
ing may have on their communities and their way of

Mining and Northern Communities: the new mine site, as supplies and labour were brought
Times Have Changed in from elsewhere. The developments did not econom-
ically benefit the regions and “negative social impacts
Canada has a long mining tradition. Until the mid- [could] still occur in communities.”4
1900s, mining in Canada took a harvest-type approach.
Resources were discovered through the surveying and Aboriginal communities in particular have been affected
mapping of previously uncharted territories. Once dis- by mining developments. Aboriginal people surrendered
covered, these resources were exploited as quickly as much of their traditional homelands through the signing
possible until the site was depleted, and companies of historical treaties. Although today they maintain their
then moved on to another territory. Temporary towns rights to hunting and fishing on uninhabited portions of
were built around these mining resources and, in their traditional territories, they do not necessarily retain
many instances, were abandoned once the resource the rights to any of the sub-surface resources. The his-
was exhausted.1 torical development and exploitation of these resources
did not happen with the consultation or consent of First
Nations communities. As a result, “Aboriginal people
Companies must build healthy relationships with Northern have had little say in decision-making regarding mining
communities. But the process can’t be rushed: companies near or on their ancestral lands, and have borne most
must be willing to work at the community’s pace. of the costs and received none—or only negligible—
benefits.”5 As noted in the last chapter of this report, it
has been only since the Supreme Court of Canada ruled
Throughout the late 19th century and well into the 20th on a few significant cases during the last decade that
century, certain regions continued to experience boom companies have begun meaningful consultations with
and bust cycles, while many mining communities were Aboriginal communities affected by mining develop-
established and settled in permanence, like Sudbury ment. Currently, these consultation processes are key
(in Ontario) and Flin Flon (in Manitoba).2 Companies factors in the success of mining projects.
founded communities in close proximity to major
deposits, and soon after, secondary sectors that sup-
ported mining activity were also established. This Relationship Building: Creating
“resulted in the development of single-industry Partnerships and Trust With
resource-dependent communities.”3 Northern Communities
In the 1980s, when mining pushed into more remote loca- Companies must take the time to build healthy relation-
tions, the fly-in, fly-out model of mining was widely ships with Aboriginal and other Northern communities
adopted. Companies chose to fly workers from southern and earn their trust. The process cannot be rushed; com-
regions of Canada into mining sites, instead of building panies must be willing to work at the community’s pace.
company towns. This resulted in savings for the com-
panies and lowered the costs of closing the mine once This is one of the lessons Vale Inco learned at its Voisey’s
the resources ran out. Unfortunately, this method was Bay mine site. The local communities had serious con-
not always inclusive of Aboriginal communities around cerns about the project, and Vale Inco took the time to
understand their perspectives and worked to build suit-
able resolutions. In this way, the company was able to
1 Natural Resources Canada, The Social Dimension of Sustainable
Development and the Mining Industry.
2 Ibid. 4 Ibid.
3 Ibid. 5 Hipwell and others, Aboriginal Peoples and Mining in Canada, 4.

gain the support it needed: “The Voisey’s Bay develop- Northerners worry that companies will be dishonest with
ment is a better project today because of the time it them about the potential adverse effects their project
took to reach the needed agreements.”6 could have on their communities and traditional lands.
Ensuring that relationships are mutually beneficial and Some groups and organizations have worked to help
provide opportunities for partnerships, and in some Northern and Aboriginal communities understand the
cases joint ventures, is also important. This demon- mining cycle and its implications. Natural Resources
strates a willingness to see a community succeed and Canada, along with the Canadian Aboriginal Minerals
build its own capacity and businesses. These partnerships Association, The Mining Association of Canada, and
can also help communities achieve their own social or several other associations produced the Mining Information
economic goals.7 In the case of De Beers’ Snap Lake Kit for Aboriginal Communities. This guide is intended
mine, in the Northwest Territories, the company has to provide an overview of the mining life cycle, and
invested over $670 million in joint venture projects with explain to communities what they can expect during
locally owned companies.8 Many mining companies are each phase. In doing so, the guide also gives commun-
also working closely with local suppliers and workers ities the tools they need to participate in the development
in Northern communities. As a result, they have become of the project.9 While the guide provides an excellent
less reliant on importing workers and materials and are starting point for communities, it is not enough.
actively engaging in training and developing the local
workforce, and building local businesses. Interviewees
also agreed that joint partnerships and capacity building By following through on their commitments, including
through other projects such as training and development partnerships, companies are able to build relationships
can foster positive relationships. based on trust between themselves and local residents.
By continuing to communicate openly with commun-

ities and ensuring that the relationship is flexible, com- Some of the most effective means of communicating
panies are able to build lasting relationships with them. with communities about mining projects can be through
By following through on their commitments, including presentations and open houses at a local level, and as
partnerships and joint ventures, companies are able to early as possible in the development cycle. Communities
build relationships based on trust between themselves need to be given as much information as possible at the
and local residents. outset with regard to mining development, operations,
and closure, so that the potential benefits and risks may be
Open and Transparent Communication fully understood before work begins on-site. Information
Communities often find themselves at a disadvantage about mining’s impacts and community rights must be
when industry proposes a project in Northern regions. accessible to people from the beginning, to allow them to
Interviewees for this report noted that communities are make an informed decision about whether they support
unprepared for mining development. They often have the project in principle. All too often, people receive
limited knowledge about mining and what it could mean information too far along in the process and are then
for their community and environment. A lack of com- able to discuss only how to mitigate impacts.10
mon vision and cohesion within the community itself
can also leave the community unsure of its position Communication strategies, such as workshops, con-
on development. Interviewees also mentioned that ferences, and online materials, can certainly facilitate
decision-making and relationship building. Larger
mining companies have also started using community
6 Vale Inco Canada, “Negotiating Agreements.”
7 Natural Resources Canada, Mining Sector Performance Report 9 Natural Resources Canada, Mining Information Kit for Aboriginal
1998–2008, 26–27. Communities, 1–2.
8 De Beers Canada, About the Snap Lake Mine. 10 Gibson and O’Faircheallaigh, IBA Community Toolkit, 92.

liaison officers, who “facilitate information sharing with Consultation and Consensus
the community and other stakeholders.”11 These officers in Aboriginal Communities
can help relay some of the community’s concerns to the Mining companies should consult with Aboriginal
company and keep the lines of communication open communities as early as possible in their projects. This
between all stakeholders. could mean as early as the exploration stage. Interviewees
observed that the earlier a community is engaged and
In providing open and transparent communication, consulted, the better. According to one interviewee, “It’s
companies help demystify their mining activities. never too early to engage Aboriginal communities in
Communities are then able to understand the benefits, dialogue.” Companies will then understand the com-
potential impacts, and risks that may be associated with munity’s interests, needs, and issues and will be better
a proposed development project. Interviewees noted able to address them before exploration and develop-
that communities aren’t always as aware of some of the ment proceeds. It increases the possibility that mining
benefits associated with a new mining project, such as projects will move forward.
local jobs and incomes that it can generate, skills that
it can develop, and much-needed infrastructure that it Kitchenuhmaykoosib Inninuwug (K.I.)
can provide. First Nation and Platinex Inc.
It is essential that companies build good community rela-
The past decade has seen an increase in the expectation tions and reach agreements from the outset of a project.
that mining companies liaise with and work on external The case of Kitchenuhmaykoosib Inninuwug (K.I.) First
outreach, and this “has become an increasingly important Nation and Platinex Inc. illustrates why this is important.
practice in the Canadian mining industry, both domes- While Platinex had engaged with the community about
tically and abroad.”12 However, this outreach remains mining exploration and development on their traditional
territories, no agreement or understanding was reached
entirely voluntary. Proponents are not obligated to pro-
between the community and the company. When the com-
vide information sessions for communities in the early pany began exploration and drilling without the community’s
stages of project planning and development.13 consent, K.I. residents protested on the exploration site.
The tensions were exacerbated when Platinex continued to
As a result, The Mining Association of Canada developed work without the community’s support and the case landed
its Towards Sustainable Mining initiative to ensure its in the courts. Platinex’s exploration plans were stalled by
protests and legal battles. The project in Northern Ontario
members engage communities that will be impacted by
was finally abandoned after nearly a decade of litigation
development. Members must measure how well they and court cases.1
work with communities and how well they are able to
respond to the communities’ concerns and needs. When
1 Canadian Business Ethics Research Network,
the initiative began in 2004, there was very little con- K.I. vs. Platinex.
sistency among members in this regard. Now, all members Source: Canadian Business Ethics Research Network,
are measured on whether their dialogues are effective K.I. vs. Platinex: A “Worst Case” Example of Community
Relations. www.cbern.ca/research/projects/workspaces/
and have successfully engaged the communities and
cura_project/case_studies/ki_vs_platinex/.
whether their response mechanisms to community
concerns have been properly established.14
There are many examples of successful agreements
11 Natural Resources Canada, Mining Sector Performance Report between communities and companies. The Diavik
1998–2008, 25. Diamond Mine in the Northwest Territories, for
12 Ibid., 24. example, sought to create a process that was inclusive
13 Ibid. of all Northern stakeholders, including the Aboriginal
14 The Mining Association of Canada, Towards Sustainable Mining: community. In the initial exploration phases, Diavik
Progress Report 2011, 16.

worked to hold public meetings so that members of the Impact Benefit Agreements: Importance for
communities could be kept up-to-date on the progress of Aboriginal Communities and Mining Companies
the project and voice their concerns. The company also Impact and benefit agreements (IBAs) have become an
worked with local communities to gather and include important instrument for local communities to receive
traditional knowledge in their planning.15 Today, the benefits and address issues from mining activity. Today,
mine is in its operational phase and the company con- IBAs are the result of four important steps:
tinues to consult with the communities and keep them 1. The company and the local community must reach
apprised of its work. Through their Socio-Economic an agreement concerning access to lands for explor-
Monitoring Agreement, the community and the public ation purposes.
at large remain aware of how Diavik is faring around 2. The parties must come to a memorandum of under-
commitments such as local employment and the standing (MoU) about the project. This MoU offers
environment.16 all parties the opportunity to openly discuss any
concerns or hopes they may have for the proposed
project. While MoU’s are not legally binding, they
Impact and benefit agreements (IBAs) have become an can clarify what needs to happen in order for pro-
important instrument for local communities to receive jects to move forward.
benefits and address issues from mining activity. 3. If overlaps exist (as in the environmental assessment
phase), they are dealt with, or procedures are put in
place to deal with them.
De Beers Canada has also worked successfully with 4. Once the first three conditions have been met, the
both the Moose Cree First Nation and the community IBA can be negotiated.19
of Attawapiskat, in Northern Ontario. These commun-
ities, along with others, had overlapping traditional ter- An IBA is described as “[a] contractual agreement,
ritories that would be impacted by a proposed diamond usually between an Aboriginal community or entity
mine.17 De Beers worked with the community of Moose and a mining company.”20 IBAs can arise from a mining
Factory and with the Moose Cree when their traditional company’s consultations through their duty to consult.
territory would be affected by rail and hydro development While the Crown is legally responsible for consultations
for the Victor mine, close to Attawapiskat. The company and cannot delegate its duty to consult, proponents (like
hosted public meetings and consultations with both com- mining companies) must be able to prove that they have
munities very early in the process, so that they could adequately consulted with communities that may experi-
understand how they could be impacted by the proposed ence impacts from a proposed project. IBAs are a tool
development project. De Beers concluded several impact that communities and proponents can use to ensure that
and benefit agreements (IBAs) in the area, including with there have been adequate consultations around a pro-
the community of Attawapiskat and the Moose Cree First posed project.21 They are important because they can
Nation. It has worked to develop a collaborative approach “ensure that adequate measures are in place to mitigate
to consultation, so that the relationship between the com- the potential negative impacts of major non-renewable
munity and the company continues to remain positive.18 resource projects, while providing support to enhance
their positive outcomes.”22
15 Canadian Environmental Assessment Agency, Backgrounder.

19 Gibson and O’Faircheallaigh, IBA Community Toolkit, 43.
16 Diavik Diamond Mine, Community Investment.
20 Natural Resources Canada, Mining Information Kit for
17 Natural Resources Canada, Mining Sector Performance
Aboriginal Communities, 91.
Report 1998–2008, 24.
18 Canadian Business Ethics Research Network, Moose Cree First
Nation; De Beers Canada’s Perspective. 22 Pulla, Striking a Balance, 7.

Mining developments in Canada’s North require that The provisions found in IBAs are important tools
communities surrounding the proposed development in helping build sustainable communities. In fact,
site be consulted and fully involved in the process. In “IBAs have the potential to increase the adaptive
areas where there are unsettled land claims, IBAs are capacity, sustainability, and ultimately, the resilience
not legally required for a project to proceed, but they of Northern communities.”28
are strongly recommended.23 However, in regions
where claims have been settled—in particular where Challenges in Negotiating and Implementing IBAs
modern land claims agreements have been concluded— There are undeniably challenges in developing, negoti-
IBAs, or Inuit IBAs (IIBAs) in Nunavut, are necessary for ating, and implementing IBAs. The greatest obstacle,
any major resource development project to proceed.24 according to interviewees for this report, is building
In the Northwest Territories, for instance, several mech- trust with communities. This is especially challenging
anisms for IBAs exist. Land claims agreements with the given the history of non-consultation between the
Inuvialuit, Sahtu and Gwich’in, and the Tlicho all include industry and Northern communities.
provisions for IBAs—but there is no single process for
the negotiation of these agreements. The most compre- The confidential nature of these agreements can also
hensive IIBA requirements in the North are a part of the pose a substantial challenge. First Nations or industry
Nunavut Land Claims Agreement (NLCA). The NLCA representatives may include confidentiality clauses in
stipulates that IIBAs must be finalized with affected both the negotiation process and the final agreement,
communities prior to the commencement of any and such clauses can limit the private sector’s ability
development projects.25 to discuss agreements with other companies operating
in the area. Interviewees stated that not knowing what
Since communities and their needs are unique, IBAs arrangements have already been concluded with other
must be adapted to suit each community’s requirements.26 companies or industries can be frustrating. There is no
Generally speaking, IBAs may include provisions for: point of reference from which to negotiate or to under-
Aboriginal employment opportunities throughout stand what others have already provided for in their IBAs.
the mine’s life cycle (exploration, development,
operation, and closure); Another obstacle can be the lack of community capacity
education and training programs that help commun- to enter into negotiations with a mining company: com-
ity members take advantage of the project; munities often do not have the necessary tools, financial
local business development opportunities; capital, or experience to enter into a meaningful consul-
scholarships; tation process. According to interviewees, the lack of
cultural and social support and programming; community capacity can significantly affect the com-
environmental management and/or monitoring; and munity’s ability to fully engage and understand the pro-
financial provisions, such as annual cash payments posed project. This issue creates an additional hurdle
or revenue sharing.27 for industry, as development projects are delayed until
communities organize a negotiating committee, which
can take some time. Frequently, the community needs
23 Natural Resources Canada, Mining Information Kit for Aboriginal
to hire outside experts for negotiations—lawyers or
Communities, 60. analysts—and this can be financially challenging for
24 Gibson and O’Faircheallaigh, IBA Community Toolkit, 32–33. communities with tight resources.29
25 Ibid.
26 Faille and Dandonneau, Aboriginal Impact Benefit Agreements. 28 Fournier, Getting It Right, 16.
27 Ibid. 29 Ibid.

Moreover, because there is no standard approach to

negotiating IBAs, there are no clear guidelines on how The Makivik Corporation and the Raglan
Mine in Northern Quebec
the private sector can address these capacity challenges.
Communities with little or no experience with major The Raglan mine in Quebec has been in operation since
projects have difficulty understanding what they can 1997 and has brought many economic and social benefits to
the local Inuit communities. The agreement provides benefits
reasonably expect from IBAs and how to negotiate mean-
to the communities closest to the mine; and some benefits
ingfully with the private sector. Interviewees noted that are channelled toward the Inuit as a whole though the Raglan
mining companies find it challenging to manage a com- Trust via the Makivik Corporation. Originally owned by the
munity’s expectations and to communicate that the mine former Falconbridge Limited, the mine is now operated by
cannot be the solution for all the community’s economic Xstrata Nickel. At the beginning of the mine operation, the
woes or provide everything the community needs. Some Makivik Corporation, which is responsible for the political,
social, and economic development of Nunavik, signed an
interviewees felt that governments, which typically play
impact benefit agreement (IBA) with Falconbridge. Initially
no role in the negotiation of IBAs, need to consider there were some challenges associated with the IBA—for
partnerships with industry to help address these example, the work rotation of four weeks in, two weeks out
particular questions. was stressful for Inuit workers, due to long periods away
from their relatives. To better assist workers, the schedule
What Benefits Flow From IBAs? was changed so that employees now work shifts of two
weeks on, two weeks off. Special accommodations are
With mining companies at home and abroad focusing
made in a hotel-style complex for visiting families, and
on sustainable development, benefits that are part of employee assistance programs assist families in separa-
impact and benefits agreements can go a long way to tion. While the company has granted contracts to local
helping these communities become self-sufficient later communities, few economic spinoff developments have
on, especially once the mine has closed. To reap the been created. Some language issues also created barriers
long-term benefits, communities need to agree on and for employees. Xstrata Nickel now provides Inuit training
programs, runs awareness programs in all of Nunavik’s high
prioritize their needs. It is critical that a consensus exist
schools, and provides scholarships in mining-related areas.
within the community, to know which elements need to By 2007, Makivik Corporation had received $32.6 million,
be supported through the development and implementa- while the mine’s direct contribution to Nunavik’s economy
tion of an agreement.30 For example: was approximately $130 million.1
. . . if a community has identified that education
and health services are sub-standard because of 1 Natural Resources Canada, “Raglan Mine–Quebec,” 33–34.
critical skills shortages in these areas, and that Source: Natural Resources Canada, Aboriginal Engagement in the
community members have little prospect of gain- Mining and Energy Sectors: Case Studies and Lessons Learned.
ing and holding industrial jobs until these servi-
ces are improved, an IBA that focuses heavily on
creating employment opportunities in a mining are nearly always included, as they are considered
project will be of limited benefit. However, if an to be important benefits of having IBAs. Communities
IBA creates a substantial, company-funded, schol- want to ensure that residents are able to take advantage
arship scheme that allows students to study in areas of opportunities resulting from mining development.
identified as community priorities, the IBA may Furthermore, “a set number or a percentage of all work
play a key role in meeting community needs.31 positions are reserved for local Aboriginal community
members.”32
It is in this spirit that communities and companies
should approach the drafting of an IBA. The provision
of education, training, and employment opportunities
32 National Aboriginal Health Organization (NAHO), Resource
Extraction and Aboriginal Communities in Northern Canada:
Social Considerations, 3; Gibson and O’Faircheallaigh, IBA
31 Ibid. Community Toolkit, 144.

Many of the positions available to the local workforce, must still rely on labourers from elsewhere until recruits
however, are entry-level positions, which do not require have completed training programs. Furthermore, educa-
a technical education. Interviewees noted that in some tional barriers make it very difficult for many Aboriginal
instances, these jobs are the first jobs that some workers employees to move beyond entry-level positions and
have ever had in their lives, as work has not always been into more senior ones.35 These realities can limit the
available in the region. Interviewees also said that mining benefits that can flow from IBAs.
companies provide as many training opportunities as
possible to communities to ensure that they are able to In addition to education, training, and employment
participate, which in turn reduces a company’s depend- opportunities for local communities, mining projects
ence on workers from outside the area. These training can also grow local businesses. IBAs provide opportun-
programs are necessary, as residents don’t always have ities for mining companies to source goods and services
the prerequisites needed to obtain any type of employ- from the local community, giving its entrepreneurs the
ment in the mine. chance to create or expand their businesses. By sourcing
goods and services through the community, mining com-
panies are helping to build up local capacity, and poten-
As well as education, training, and employment oppor- tially create sustainable businesses that can continue to
tunities, mining projects can help grow local businesses exist once the mine has closed. As a result, funds flow
that can continue to exist once the mine has closed. back into the community and contribute to its ongoing
development. Joint ventures between companies and local
businesses can be mutually beneficial, as companies save
With commitments by mining companies to hiring a on the costs of importing materials or goods, and directly
large percentage of locals, mining companies invest contribute to the growth and prosperity of the region.
heavily in the development and delivery of training pro- There are many examples of successful economic agree-
grams. Diavik and De Beers have worked with local ments throughout the North. For example, Diavik has
communities to provide training programs that are rel- spent over $2 billion on Aboriginal businesses since
evant to prospective employees.33 Interviewees noted construction began in 2000.36 In Labrador, the Voisey’s
that programs like the Mining Essentials program or Bay project awarded well over $500 million in contracts
training developed through the NWT Mine Training to Aboriginal businesses. Even so, there are sometimes
Society have been very successful and have proven to barriers that prevent some smaller local businesses from
be invaluable in the recruitment of residents nearest to accessing important mining contracts. Local businesses
the mine site. And although mining is cyclical, these can lack the skills and expertise required to negotiate these
training programs ensure that community members are agreements or to provide the required services to mining
given transferable skills that will permit them to find companies. What’s more, a lack of capital in smaller,
other employment once the local mine closes.34 more remote communities can prevent would-be entre-
preneurs from bidding on contracts because they do not
Nevertheless, it can still be difficult for employers to have the start-up funds.37 In such situations, govern-
meet the committed number of employees from the local ments and, to some extent, companies could help local
community. Training opportunities arise only when the entrepreneurs by providing training, mentorship, and
mine begins operations, and thus there is a shortage of seed capital.
skilled and trained labour at the beginning. Companies

33 De Beers Canada, Education and Training; Diavik Diamond Mine,
Community Investment. 36 Diavik Diamond Mine, Community Investment.
34 De Beers Canada, “Employees,” 37–49. 37 Gibson and O’Faircheallaigh, IBA Community Toolkit, 156–57.

The creation of jobs, local business development, and community as well—such as the construction of recrea-
education and training opportunities has a large social tion facilities and baseball fields, as in the case of Baker
and cultural impact on communities. One of the more Lake, Nunavut.42
obvious benefits is an increased standard of living for
many residents. While there can be—and often are— Through a variety of initiatives and programs, compan-
difficulties in transitioning from a traditional to a wage- ies support links to the traditional lifestyle and economy
based economy, for many families a salary can mean of Aboriginal Peoples. For instance, “[a]rrangements are
the ability to meet basic needs, like shelter, food, and commonly made for employees working on the sites of
clothing. Interviewees emphasized that this is by far one major projects to harvest at specific, crucial times during
of the most important social benefits for many. They the year. … The traditional economy—hunting, trapping,
also noted that this alone can go a long way in building and fishing—provides important community and cultural
residents’ self-esteem and giving them the confidence benefits that help to sustain the lifestyles unique to the
they need to look for other opportunities later on. As well, North.”43 Mining companies also value traditional know-
a steady wage means that there is much less dependence ledge and culture, and frequently include support for it in
on social assistance.38 Workers can also afford better agreements with communities. Agreements often include
accommodations and shelter. provisions for the protection of language through courses
or special programs; the preservation of important cul-
Furthermore, IBAs can be a means to providing com- tural sites; the funding of traditional knowledge studies;
munities with much-needed infrastructure. Communities and funding for celebrations, events, and activities.44
often don’t have basic infrastructure such as hospitals,
schools, roads, or access to reliable and efficient power The financial provisions of IBAs and their connection to
sources. Mining companies can address some of these resource revenue-sharing arrangements are also import-
gaps. For example, Agnico-Eagle has helped provide ant elements to discuss. In some instances, these provi-
cell phone service to the community of Baker Lake, sions could amount to millions of dollars for Aboriginal
Nunavut, through the installation, at the company’s own communities to use on special projects and community
cost, of a cell tower.39 The company is also actively infrastructure-related development. Resource revenue
working to help build road infrastructure in the territory. sharing, however, is an extremely complex issue that
Recently, it was given the approval to begin construc- has multiple political, economic, and jurisdictional
tion on a 13 kilometre road that will link the Meliadine implications.45 In particular, a significant gap exists
project to the town of Rankin Inlet. The road will be between what percentage of resource revenues govern-
used to ship workers and supplies like fuel and food ments are prepared to share and what Aboriginal groups
from the town to the mine site, saving the company are expecting and advocating.46 From an Aboriginal point
close to $5 million annually over the cost of flying. The of view, “Resource wealth tends to bypass communities
road will also create many business opportunities for as profits go to outside investors, payments go to outside
the town.40 De Beers Canada has also worked closely services and suppliers, wages go to outside labour, pub-
with the communities surrounding its Victor Lake mine lic revenues go to central governments, and local people
in Northern Ontario to help look at the maintenance of are barred from participation by poor education, social
local potable water sources and sewage treatment. The and physical infrastructure.”47
company has also worked to set up a monitoring program
for mercury levels in the local water supply.41 Companies
invest in other types of infrastructure projects for the 42 Agnico-Eagle Mines Limited, Good Neighbour, 53.
43 Pulla, Striking a Balance, 8.
38 Pulla, Striking a Balance, 7. 44 Gibson and O’Faircheallaigh, IBA Community Toolkit, 164–65.
39 Agnico-Eagle Mines Limited, Good Neighbour, 63. 45 Cornish, 2006, i.
40 Rogers, “Work Starts on New Rankin Inlet–Meliadine Road.” 46 Ibid., 2.
41 De Beers Canada, “Employees,” 63. 47 Ibid., 8.

The private sector, however, sees that a greater sharing Mining projects can also exacerbate housing shortages.
of public revenues between government jurisdictions Many communities already have issues with overcrowded
and Aboriginal communities would help to provide a homes, and existing homes are often in desperate need
stronger and more predictable foundation to support long- of repair. Local infrastructure, such as sewage treatment,
term investment in the mining sector. According to one can be insufficient to meet the demands placed on the
expert, industry’s experience has often been “that instead system.51 Ultimately, an “… influx of workers can
of governments sharing benefits, they deflect aboriginal worsen existing housing shortages, inflate house prices
demands for sharing resource revenues onto industry in and rents, and lower vacancy rates. … There are few
the form of equity participation, revenue surcharges, homeless shelters, and as projects lure transient people
and increased impacts and benefits compensation.”48 into communities, the number of homeless is likely
This then leads industry to seek changes to Canada’s to increase.”52
tax regulations in order to offset its expenses related
to negotiating IBAs.49 There are also potential adverse effects for family
cohesion. The shift work and rotation schedule leaves
Ultimately, greater efforts are needed to build meaningful mainly women home alone to care for children and can
tripartite (federal/provincial/Aboriginal) processes. These put a strain on families. NAHO reports that “in extreme
processes would include transparent and accessible cases, workers may not return home between shifts,
principles and guidelines on resource revenue-sharing opting to spend their paycheques gambling or in bars
arrangements—especially in the historic treaty regions in larger communities. The strain at home can lead to
across the North. Lessons can be learned from the imple- conflicts, family violence, the neglect of children, and
mentation of resource revenue-sharing arrangements family break-ups.”53 Increased violence against women
embedded in modern land claim agreements. In the and drug and alcohol abuse may also result.54
Northwest Territories, for example, the Inuvialuit, Gwich’in,
Sahtu and Tłįchǫ settled agreements include surface
ownership, with subsurface ownership in some areas. The process would benefit from having a negotiation
The Gwich’in, Sahtu and Tłįchǫ agreements also pro- framework that provides clear guidelines and responsibil-
vide a share of the resource revenues collected on pub- ities for both the industry and the communities.
lic land throughout the Mackenzie Valley.50
A community’s social cohesion can also be affected, as

Adverse Effects of Mining many workers and their families may no longer want to
on Northern Communities or be able to participate in traditional activities or vol-
unteer in the community.55 Further tensions can exist
While large mining projects can bring great benefits to between those earning high wages who can afford to
Northern communities, they can also create a number of purchase home goods, new vehicles, and new har-
negative impacts. One of the most noticeable relates to vesting equipment, and those who cannot. Aboriginal
the earning of a wage. Several interviewees pointed out communities’ sense of sharing can be challenged as the
that financial literacy is nearly non-existent in many
Northern communities. Many workers have not had
access to a salary in the past, and many tend to spend 51 NAHO, Resource Extraction and Aboriginal Communities
in Northern Canada: Social Considerations, 4.
all of their earnings without considering that their
job may not be a long-term certainty. 52 NAHO, Resource Extraction and Aboriginal Communities
53 Ibid, 7–8.
48 Cornish, 2006, 12.
54 Pulla, Striking a Balance, 7.
49 Ibid., 12
55 NAHO, Resource Extraction and Aboriginal Communities
50 Government of the Northwest Territories, 2013. in Northern Canada: Cultural Considerations, 5–6.

wage economy confronts the traditional economy. For benefit from government support. This would ensure
instance, “[p]eople begin to expect payment to attend that financial literacy programs are not limited to one
annual general meetings and to teach traditional skills. particular site, but are available to all who need them.
In a sense, the cost of social capital in the community
increases.”56 Mining projects can bring about profound To help mitigate the impacts of mining shift work on
societal changes, and many communities find them- individuals, families, and communities, companies need
selves unprepared to deal with them. to look at how this type of work affects families. Much
flexibility is needed to ensure that family cohesion is
maintained. As well, companies, governments, and com-
Future Steps Toward Improved munities need to work together to help family members
Northern Community Net Benefits affected by rotating schedules. This could include, for
example, funding for and provision of child care within
IBAs are important steps to engaging local Northern communities and support mechanisms for extended
Aboriginal communities, providing them with oppor- families that care for children while parents are away
tunities from new mining projects, and addressing on shift work.
their concerns about development in their regions. But
improvements can be made in how these agreements Furthermore, community leaders and governments
are negotiated. The process would benefit from having could develop, where appropriate, culturally relevant
a negotiation framework that provides clear guidelines counselling and social services for issues related to
and responsibilities for both the industry and the com- substance abuse or violence resulting from the stresses
munities. The framework should be flexible and adapt- brought on by economic development. More resources
able, so that the individual needs of the communities dedicated to public safety in communities would also
can be met. Companies and communities are currently help in these matters.
left on their own to negotiate these agreements, and a
framework could act as a point of reference, especially if The mining industry has taken the lead in helping give
the parties are negotiating an agreement for the first time. communities the economic and social benefits they seek
from economic development. But mining companies can-
There is value in having a more open and transparent not be expected to assume all of the costs; governments
process of negotiation and in sharing the terms of the need to step in and help. This is especially evident around
agreements of IBAs. Such a process would allow gov- infrastructure and public services such as health care and
ernments to support the process, especially when there education. Major mining projects offer an opportunity
are points of contention. It would also better engage for joint partnerships between companies, governments,
governments early on in helping address issues that and communities, to fund and provide community needs.
the mining company and community are not properly These partnerships could, for example, finance the cap-
equipped to handle, such as education, health care, ital and maintenance costs of transportation, energy, and
and social services. communication infrastructures provided to communities;
and could take a similar approach for services such as
To help workers transition to a wage economy, govern- education and health care. Mining companies may assist
ments need to step in to provide financial literacy train- with the construction or funding of schools, hospitals,
ing. Some mining companies in the North have already and recreational facilities, but government should also
implemented these programs, but they would greatly participate, possibly by co-funding these capital expendi-
tures and providing the necessary resources to deliver
the associated services.

Governments also need to help fund affordable housing Finally, governments and mining companies need to be
options for communities. While mining workers can aware that communities don’t always, and do not neces-
afford to pay higher housing costs, many community sarily want to, develop at the pace of industry. While
members cannot. This creates a division within the communities are often accepting of the benefits major
community, adding to fears of social and community projects can bring, the rapid social changes can create
disintegration. By providing affordable housing, gov- challenges. An outstanding question would be whether
ernments can prevent those who cannot afford housing mining development can be synchronized with the pace
from being pushed into homelessness and help ensure of community development. This would require govern-
continuing social cohesion. ments and companies to work together to support com-
munity transitions so that communities are fully able to
benefit from development projects.

Chapter 5
Addressing Environmental
Stewardship and the Impacts
of Mining
water resources are integral to many communities’ way
Chapter Summary of life, culture and, in some instances, subsistence;1
and mining can impact the North’s fragile ecosystem,
Historically, mining activities in Northern com-
including through air, land, and water pollution and the
munities have led to a legacy of environmental
disturbance of animal migratory patterns. Ultimately,
degradation, contamination of soils and water-
there is an understanding that “[m]ining has never
ways, and abandoned mines.
been, and will never be, environmentally benign.”2
Regulations and technological advances
have done much to mitigate the environ- The environment and an individual’s connection to it
mental impacts of mining, but communities are an important aspect of Northerners’ identities. By
still fear the potential adverse effects mining spending time out on the land, for example, Aboriginal
activities can have on traditional hunting and Peoples gain much traditional knowledge, and connect
harvesting lands. to their communities by being involved in traditional
activities. Hunting or trapping with other community
Governments and industry are working
members “reinforces such cultural values as sharing,
toward environmental sustainability through
ethnic self-identity, the holistic systems of health, and
a variety of legislated and voluntary industry-
the individual’s sense of well-being and self-respect.”3
led programs. Innovation has improved the
mining sector’s efficiency, health and safety,
Northern communities in general are also economically
and environmental performance.
reliant on the land and water. Residents use the North’s
The inclusion of traditional ecological know- rich flora and fauna resources as part of the traditional
ledge in environmental monitoring plans can wage economy: hunting, trapping, and fishing still provide
help companies plan for and mitigate potential employment opportunities for Northerners.4 Furthermore,
environmental impacts. Northerners value living in small communities surrounded
M
ining exploration, development, and poten- in Northern Canada: Cultural Considerations, 3.
tial economic spinoffs can be very attract- 2 The Mining Association of Canada, Facts and Figures of the
ive for Northern communities. However, Canadian Mining Industry 2011, 70.
communities struggle with the potential impact of min- 3 Ibid., 4.
ing projects on their traditional homelands. Land and 4 Pulla, Striking a Balance, 8–9.

by pristine wilderness.5 Changes to the natural environ- quickly. No planning was done to ensure management
ment brought on by mining projects can therefore be of of tailings and runoff. Mining continued in this manner
concern to Northerners. until the 1960s, when the last mine closed its doors.7
Today, a number of environmental hazards remain: high
Historically, little attention was paid to the effects mining levels of pollutants such as arsenic, mercury, and cyan-
could have on the environment. Over the last two decades, ide can be found in the soil and in the lakes and streams
however, governments and companies have worked hard around former mine sites.8
to reduce pollution from mining activity. Investments have
been made in new mining processes and technologies, While remediation work is currently being carried out on
and regulations have been implemented to help protect both of these sites, there are thousands of former mine
the environment for current and future generations. But sites where work has not yet begun. In fact, Natural
further efforts are required, as there are still environ- Resources Canada (NRCan) estimates that there are
mental issues to be resolved. nearly 10,000 orphaned or abandoned mining sites in
Canada today, and all require varying degrees of remedi-
ation.9 According to NRCan, “the most serious environ-
Mining and the Environment: mental issues posed by abandoned mines are acid rock
A Historical Perspective drainage and metal leaching from underground workings,
open-pit mine faces and workings, waste rock piles, and
While mining projects today try to ensure that minimal tailings impoundment areas.”10
damage is done to the environment, this hasn’t always
been the case. Up until the early part of the 20th cen-
tury, no scientific knowledge was available about the Up until the early part of the 20th century, no scientific
harmful effects of tailings ponds, fuel or oil spills, or air knowledge was available about the harmful effects of
pollution. No links were made between environmental tailings ponds, fuel or oil spills, or air pollution.
and human health, and few precautions were taken against
contamination of water or land resources. This continued
well into the middle of the 20th century. There are many Given society’s—and consequently the mining industry’s—
well-known examples in the North of abandoned mines former views on the environment, Northern commun-
that have left lasting environmental impacts. For example, ities remain hesitant to invite mining projects into their
to this day, significant environmental challenges remain regions. Interviewees noted that environmental concerns
in the restoration of the historic Faro mining complex remain one of the greatest obstacles in obtaining a com-
in Faro, Yukon. According to estimates, there are nearly munity’s support for a proposed development. Many
70 million tonnes of tailings on-site and 376 million examples of abandoned mine sites remain fresh in the
tonnes of waste rock that need to be reclaimed. This collective memory, and assurances of reclamation from
waste also contains toxins that are believed to adversely companies haven’t always translated into concrete action.
affect humans, plants, and animals in the area.6
In recent decades, the movement for greater environmental
The town of Cobalt in Northern Ontario is another stewardship has grown in importance. This is resulting in
example of the lasting environmental impacts of a increased government regulations and voluntary programs
Northern mine. When large silver deposits were discov-
ered in Cobalt at the turn of the 20th century, construc- 7 Cobalt Mining Legacy, Introduction.
tion and exploitation of the resources happened very 8 Cobalt Mining Legacy, Tailings of the Cobalt Area.
9 Natural Resources Canada, “Environmental Performance,” Mining
Sector Performance Report 1998–2008. This number also includes
5 Environics Research Group, SNOW. mines in Canada’s Southern regions.
6 Faro Mine Remediation Project, Project. 10 Ibid.

by industry.11 The mining industry has made substantial contaminants, they are still present in tailings. If they
improvements in their environmental performance over are improperly stored or treated, these contaminants
the last two decades. The release of pollutants into the can pose a risk to local wildlife, vegetation, and natural
environment has declined between 72 and 96 per cent bodies of water. Companies will sometimes use local
in the past 15 to 20 years.12 For example, arsenic pollu- water reservoirs such as lakes as impoundment areas for
tion from mining has declined by 79 per cent, while tailings instead of—or to reduce the cost of—building
mercury releases have dropped by 96 per cent. containment facilities. However, communities and
environmental groups have been concerned, as this
method may not prove to be secure over the long term.14
Mining’s Potential
Environmental Impacts Another issue of significance is the valueless rock gen-
erated by operations while the mine is in production.
Though great strides have been made to reduce the This waste rock must be removed from the land so that
number and types of impacts that may occur, mining is mineral or metal resources can be extracted. In the case
not benign. The industry continues to work to ensure of open-pit mines, removing the rock affects the land.15
that soils remain uncontaminated, that tailings and In some cases, sulphides in the waste rock react with rain
waste are properly contained, and that greenhouse and air, creating acidic drainage from the waste rock piles,
gas emissions are limited. called acid mine drainage. This acid can dissolve metals
in the waste rock and, if not collected and treated, intro-
Tailings are one of the major environmental impacts duce harmful metals into ground water.16
facing the mining industry today. Tailings are the product
of the mineral extraction process. They are composed While tailings management and acid mine drainage issues
of various chemicals, finely ground ore, and water, in a have come a long way, they continue to be one of the
muddy mixture called slurry. According to The Mining greatest environmental challenges facing the mining
Association of Canada: industry today. According to Mining Watch Canada:
Because the rock has been finely ground, tailings One of the greatest risks associated with storage
can be very chemically reactive and can pose of tailings in an impoundment is from failure of
serious environmental risks from acid rock the impoundment resulting in a spill of the tailings
drainage and the release of toxic metals, and inside. Because the tailings solids often don’t hold
toxic reagents used in processing. The combina- together or form a solid mass, if an embankment
tion of liquids and fine-grained solids make many breaks, the tailings can flow out of the impound-
tailings physically unstable. If left exposed to ment and travel some distance down-stream creat-
the air and dried, tailings can also be blown on ing serious risks to the environment, human safety,
the wind causing air pollution and washed into and infrastructure such as buildings and roads.17
waterways, harming aquatic ecosystems.13
Abandoned and orphaned mines also pose these types
Tailings often contain harmful contaminants such as of threats to the local environment. Because many of
mercury, lead, arsenic, cyanide, cadmium, and nickel. the tailings have gone unchecked and uncontained for
And although the industry has reduced the amount of many decades, heavy metals have leached into the soil
and vegetation around the site.
11 Natural Resources Canada, “Environmental Performance,” Mining

14 Ibid.
Sector Performance Report 1998–2008. This number also includes
mines in Canada’s Southern regions. 15 Natural Resources Canada, Mining Sector Performance Report
1998–2008, 12.
12 The Mining Association of Canada, Facts and Figures of the
Canadian Mining Industry 2011, 70. 16 MiningWatch Canada, Two Million Tonnes a Day, 1.
13 MiningWatch Canada, Two Million Tonnes a Day, 1. 17 Ibid., 4.

Other issues of environmental concern to the mining scientific studies have shown that toxins can appear in
industry are air pollution and greenhouse gas (GHG) the fatty tissues of the traditional food sources of many
emissions. Air pollution and GHG emissions primarily communities. As well, mining projects can disrupt the
result from the use of diesel fuel for heavy equipment traditional migration patterns of some wildlife species,
on mining sites and for transportation in remote Northern which can in turn cause these species to abandon these
regions. Emissions are also linked to the use of diesel migration patterns entirely. Fish habitats may also be
generators on mining sites, which supply power for disrupted by these industrial activities.22 As a result,
operations.18 Mining companies are now looking into communities dependent on traditional foods can be
alternative energy sources to reduce their dependence put at risk. Hunting and fishing becomes difficult, as
of diesel fuel. And although there are “no regulated tar- hunters and fishermen must travel greater distances
gets, many extraction operations are improving their to find food.
capabilities in compressed air, ventilation, metering
and energy management.”19
Approaches Toward Environmental
Sustainability
Air pollution and GHG emissions primarily result from the
use of diesel fuel for heavy equipment on mining sites Overall, the mining industry has been working hard to
and for transportation in remote Northern regions. limit its environmental impact over the past 20 years.
Specifically, “[n]ew scientific research, regulatory sys-
tems, oversight, and industry actions have led to con-
The impact on biodiversity of the total cumulative tinuous improvements in the sector’s environmental
effects of tailings, air pollution, and emissions is also performance.”23 Combined, these steps have led to a
of great concern. As a recent Government of Canada significant reduction in the number of harmful effects.
report on biodiversity states, “[It] is being lost and will But the job is not finished. As mentioned above, ongoing
come under increasing pressure as land is converted to environmental issues will require continued action by
urban and industrial use [and] the integrity of ecosystems industry and governments.
is compromised by industrial pollution … . ”20 Mining
companies need to be conscious of the impacts a min- Five categories of measures can be taken to protect the
ing project can have over the course of its life cycle. environment and help achieve environmental sustainabil-
Environmental assessments and review processes can ity. They are:
help identify these adverse effects early on, but they 1. Legislative acts and regulations enforced by regula-
need to be properly monitored, as “inadequate long- tory bodies.
term monitoring … makes it difficult to evaluate the 2. Market-based measures imposed by government
impact of operations on biodiversity.”21 3. Voluntary programs initiated by industry and
companies.
The construction of roads and mine sites, the storage 4. Protected areas and the integration of Aboriginal
of tailings, and the potential leaching of heavy metals traditional knowledge into land use plans.
can adversely affect animal populations. Numerous 5. The use of new mining technologies and processes
implemented by industry to address environmental
18 Natural Resources Canada, Mining Sector Performance Report challenges.
1998–2008, 15–17.
19 The Mining Association of Canada, Facts and Figures of the
Canadian Mining Industry 2011, 72.
20 Canada’s 4th National Report to the United Nations Convention in Northern Canada: Cultural Considerations, 7. See also
on Biological Diversity, 133. MiningWatch Canada, Mining in Remote Areas.
21 Natural Resources Canada, Mining Sector Performance Report 23 Natural Resources Canada, Mining Sector Performance Report
1998–2008, 18. 1998–2008, 12.

Legislative Acts and Regulations to human use, whether commercial, recreational, or

As mentioned in Chapter 4, federal and provincial/ Aboriginal fisheries. Less protection would be in place
territorial governments review a proposed mining pro- for fish habitats. It is still too soon to determine what
ject through environmental assessments. No project effect these changes will have on the environment and
can move forward without approval by both levels how they will affect development projects in the future.
of government following these assessments.
Market-Based Measures
Once a mining project has been developed and operations In addition to acts and regulations, governments can
begin, the mining company must comply with a set impose market-based measures, such as effluent charges
of environmental regulations. Federal and provincial/ and emission taxes. An effluent charge is a fee that a
territorial governments have various environmental company must pay to governments to discharge a cer-
protection acts. Within these acts, there are regulations tain type of pollutant or emission, based on its amount
applying to the impact of mining activity on air, land, and/or quality. While effluent regulations do not exist
water, fish, fish habitat, and wildlife. Each province or in Canada, some U.S. states (e.g., Louisiana, California,
territory may be regulated by more than a dozen federal and Wisconsin) have effluent fees based on quantity and
and provincial/territorial acts with multiple environmental level of toxicity.28 In Canada, the provinces of British
regulations, setting qualitative and quantitative standards Columbia, Quebec, and Alberta have all imposed car-
and guidelines that mining companies must meet. With bon taxes. Unfortunately, these taxes are too low to
respect to tailings and acid mine drainage, the federal incite companies to reduce their emissions. Beyond
government revised its effluent regulations in 2002, these provinces, effluent charges and emission taxes
resulting in the Metal Mining Effluent Regulations are unpopular measures in Canada. In fact, there are
(MMER).24 These regulations are part of the Fisheries few countries that use such measures. The problems
Act. They “regulate the deposit of mine tailings and with this type of approach are the ability and willingness
other waste matter produced during mining operations of government to set the right charge or tax to meet an
into natural fish bearing waters.”25 They force metal environmental target, and the political unpopularity with
mining companies to closely monitor the release of tox- corporations and the public. Government must set the
ins through acid mine drainage at the facility level and effluent charge or emission tax at a high enough level
set acceptable limits. Compliance rates for the release on so that it provides an incentive for polluters to reduce
cyanide and other harmful toxins such as arsenic, nickel, their environmental impacts to meet environmental tar-
and zinc are at approximately 99 per cent.26 The federal gets. If the charge or tax is too low, polluters will find
government plans to expand these regulations to some it less costly to pay fines than to invest in technologies
non-metal mining, including diamond mining.27 to reduce their environmental impact or to change
production processes.
However, recent changes to federal regulations could
mean less environmental protection in the future. The Another market-based measure is a cap-and-trade system.
2012 federal omnibus Bill C-38 could lead to some small It requires that the government set an overall environ-
projects being exempt from federal environmental assess- mental cap or limit and allocate emission permits to
ments. Furthermore, the legislation makes important industry based on this limit. Companies then have an
changes to the Fisheries Act. It would narrow the scope opportunity to buy and sell these permits among them-
of protected habitats and species only to those related selves. Such an approach can be cost-effective in meet-
ing environmental targets. This type of system is used
24 Fisheries and Oceans Canada, Metal Mining Effluent Regulations. both in the United States and throughout the European
25 Ibid.
Union to reduce carbon, sulphur, and nitrogen dioxides
26 Environment Canada, Summary Review of Performance of Metal
Mines Subject to the Metal Mining Effluent Regulations in 2010.
28 National Center for Environmental Economics, 4.2.3. Examples of
27 Federal Budget 2012. State Effluent Fees.

in emissions. In Canada, Quebec29 has joined California

in the establishment of a cap-and-trade system for car- Towards Sustainable Mining Initiative
bon dioxide emissions and others may join as part of The Mining Association of Canada’s (MAC) Towards
the Western Climate Initiative.30 A cap-and-trade sys- Sustainable Mining initiative is an industry-led environ-
tem for carbon dioxide emissions could apply to mining mental initiative to which all MAC member companies must
subscribe.1 It sets performance measures related primarily
activity. Smelting operations and other non-metal-based
to the environment. Member companies must report their
operations may be the most impacted by these types of results every year, and they are verified by an external third
measure, as they generate a substantial amount of party every three years. Highlights from the initiative are
greenhouse gasses. available on MAC’s website and in its annual progress report.
The initiative also has a Community of Interest Advisory

Voluntary Programs Initiated Panel composed of various stakeholders from Aboriginal
by Industry and Companies groups, civil society institutions, community economic
In addition to government measures, the mining indus- development organizations, labour unions, and mining
try has its own environmental stewardship programs. companies. This panel assesses the implementation of the
initiative and progress made and issues its independent
These programs can provide social licences to operate
statement in the annual progress report.2 In 2010, the
and help companies be good corporate citizens. Mining British Columbia Mining Association was the first provincial
companies must gain and maintain the trust of commun- association to adopt the Towards Sustainable Mining initiative.
ities affected by their activities. Northerners value their This will expand the number of companies applying the initia-
natural environment and want to ensure that companies do tive’s principles and reporting on its performance measures.
not pollute local resources. Companies willing to respect
local communities are likely to gain greater support for 1 The Mining Association of Canada, Towards Sustainable
their projects. Voluntary initiatives are especially import- Mining: Progress Report 2011, 4.
ant, as “[t]he industry’s public image is closely tied to 2 Ibid., 30–33.

its environmental performance.”31 Voluntary environ- Source: The Mining Association of Canada, Towards Sustainable
Mining: Progress Report 2011.
mental stewardship programs can provide a means of
minimizing risks of damaging incidents and of taking
effective actions to remedy the situation if it occurs.
Another initiative supported by the mining industry, and
Canadian Mine Ministers, is the National Orphaned/
There are several important voluntary initiatives. The
Abandoned Mines Initiative (NOAMI). Established
Prospectors & Developers Association of Canada’s
in 2002, a multi-stakeholder advisory committee was
(PDAC) e3 initiative is one. This initiative is a resource
formed to work on issues related to abandoned mine
that provides guidelines and examples of best practices
sites. Since its establishment, the NOAMI committee
for exploration activities. It also provides exploration
has assisted with many mining remediation projects. It
companies with information on community engagement
works collaboratively with all levels of governments
and social responsibility issues though its e3 Plus pro-
and several external members.33
gram. PDAC is working on establishing performance
objectives and reporting and verification procedures.32
Protected Areas and Aboriginal
Traditional Knowledge
In addition to regulations and market-based measures,
29 Piette, Canada. governments can legally protect geographic areas from
30 The Western Climate Initiative is a collaboration of U.S. states industrial activity. In Canada, 100 million hectares of
and Canadian provinces to reduce greenhouse gas emissions. In
land and 4 million hectares of oceans are protected by
addition to Quebec, other participating provinces include British
Columbia, Ontario, and Manitoba. federal and provincial/territorial acts to conserve nature,
31 Natural Resources Canada, Mining Sector Performance Report
1998–2008, 12.
33 Natural Resources Canada, Mining Sector Performance Report
32 Prospectors & Developers Association of Canada, e3 Plus, 1–3. 1998–2008, 19.

wildlife, and ecosystems.34 They include national and Additionally, Aboriginal traditional knowledge can be
provincial parks, migratory bird sanctuaries, and wild- an extremely valuable resource in the management and
life areas that are habitats for species at risk. No indus- mitigation of environmental impacts. The integration
trial activity, including mining, is allowed within these of traditional knowledge on local fauna and flora from
protected areas. Aboriginal communities can be used to minimize impacts
on animal migration routes, mating grounds, or rare plant
As well, all provinces and territories have land use species. Working with Aboriginal communities in this
planning processes that establish where and how eco- capacity can also help build trust between the two par-
nomic development, including mining, will take place ties. The Diavik Diamond Mine, for example, integrated
in Northern regions. The purpose of land use plans is to traditional knowledge to help the company in the design
alleviate potential conflict between stakeholders, such and implementation of an environmental management
as Aboriginal communities and mining companies, over plan. The inclusion of traditional knowledge helped
the use of land. It is important that these plans integrate Diavik in the management of fish habitat and has led
traditional Aboriginal knowledge of the environment to increased monitoring during caribou migration.36
and historical use of the land with natural resource
and scientific information. Use of New Mining Technologies
and Processes
Through innovation, the mining industry has greatly
The mining sector, assisted by environmental technology improved its efficiency, health and safety, and environ-
companies, has devoted sizeable financial resources to mental performance. The mining sector has devoted sub-
finding new technologies and engineering solutions. stantial financial resources to finding new technologies
and engineering solutions, with assistance from environ-
mental technology companies. And research centres,
A major challenge in establishing protected areas and universities, and government laboratories have provided
in developing land use plans is to balance the needs to environmental research and technological support over
conserve biodiversity and nature and to protect Aboriginal the years to help the mining sector address complex
traditional use of the land and waters with opportunities environmental issues. This ongoing research has resulted
for resource development. Geo-mapping done by govern- in a variety of technologies—such as information tech-
ments can provide valuable information for the estab- nology, remote sensing, geographic information systems,
lishment of protected areas and in the creation of land robotics, and biotechnology—transforming this sector
use plans. into a high-technology industry.
Mineral exploration requires access to vast geographic The Canada Centre for Mineral and Energy Technology
space, since it can take up to 10,000 grassroots exploration (CANMET) Mining and Mineral Sciences Laboratories,
projects to find one deposit that is economically viable.35 part of Natural Resources Canada, has supported prov-
Mineral exploration activity can provide scientific know- inces, territories, and industry by providing them with
ledge of deposits that is valuable for the development of scientific research and advice on a variety of issues,
land use plans and in the assessment of where protected including environmental challenges. Today, much of
areas should be established. It is key that governments its research focuses on the sustainable development
ensure reasonable access to Northern regions for min- of Canadian mining resources.37
eral exploration, since results can be used with other
data for land use plans and establishing protected areas.
34 Environment Canada, Why Create Protected Areas? 36 Natural Resources Canada, Mining Sector Performance Report
1998–2008, 18.
35 Aboriginal Affairs and Northern Development Canada, ”Discovery
and Advanced Exploration.” 37 Natural Resources Canada, Mining and Mineral Technology.

Another organization, the Canada Mining Innovation

Council, was established in 2007 and incorporated in Green Mining Initiative
2009. It is a network of leaders from academia, govern- In 2009, Natural Resources Canada launched the Green
ments, companies, associations, and research centres Mining Initiative, a multi-stakeholder research program
working together to enhance collaboration and improve endorsed by the Canada Mining Innovation Council.1
alignment of resources. Its aim is to help Canada become The initiative has four pillars:
1. Footprint reduction—finding new ways to reduce
a “global leader in a socially and environmentally respon-
the quantity of waste and contaminants.
sible, safe, and productive mining industry through leading- 2. Innovation in waste management—focusing on new
edge research and innovation.”38 methods and alternative treatment technologies.
3. Mine closure and rehabilitation—looking into
Continued commitments to innovation will be critical new methods of assessing and mitigating environ-
in meeting and addressing these complex challenges. mental impacts.
4. Ecosystem risk management—developing and imple-
Mining companies and governments will need to invest
menting effective ways to close, monitor, and reclaim
substantially in research and development. Research mine sites.2
centres, environmental technology firms, and universities
All four areas are key environmental challenges that the
will need to coordinate their efforts with the mining sec-
industry still faces. The Green Mining Initiative hopes
tor and governments. Both the Canada Mining Innovation to make important strides in these areas, thus helping
Council and the Green Mining Initiative are steps in the companies remain competitive and establishing greater
right direction. Yet mining companies will have to be environmental leadership. 3
willing and able to implement new technologies and
processes that come out of this research and these 1 Canada Mining Innovation Council, Green Mining Initiative.
collaborative efforts. 2 Canada Mining Innovation Council, Green Mining Initiative;
Natural Resources Canada, Backgrounder.
38 Canada Mining Innovation Council, Mission & Vision. 3 Canada Mining Innovation Council, Green Mining Initiative.
Source: Canada Mining Innovation Council; Natural
Resources Canada.

Chapter 6
Creating a Sustainable Future:

What Happens After a Mine Closes?
mining development in Northern regions, new mines will
Chapter Summary open and begin to operate across the North. Opportunities
created throughout the mining cycle, from exploration
Mine closures can greatly impact workers,
to production, can provide local communities with
local businesses, communities, and the
increased prosperity. However, mining is cyclical and
environment. To mitigate potential impacts,
a non-renewable resource sector by nature. Eventually,
mining companies must work closely with
mines close. Closure can greatly impact workers, local
communities and comply with federal and
businesses, communities, and the environment. Yet min-
provincial/territorial legislation when planning
ing can still play a vital role in building a sustainable
for mine closure.
future for Canada’s North.
Financial bonds posted by companies help
ensure that even if the company goes bankrupt,
funds exist for remediation and site cleanup. Minimizing the Environmental
Impacts of Mine Closure
When dealing with mine closures, commun-
ities can face many obstacles, ranging from
The closure of a mine involves the closing, decommis-
economic downturn to social impacts.
sioning, and rehabilitation of the actual mining site itself.
Options for economic diversification can be Throughout its lifespan, a mine generates a great deal
limited for remote communities, meaning of waste due to the nature of its operations. When it
some may never fully recover after the reaches the end of its life cycle, products such as tail-
closure of a mine. ings ponds and waste rock must be dealt with in a safe
and responsible manner. In the past, mining companies
Governments, industry, and community lead-
left the site as it was, with little effort to remediate it.
ers must work together in planning for clos-
Today, companies must submit plans for closure and
ure and ensuring a smooth transition.
reclamation of the mine sites to governments before
operations even begin. This helps to ensure that the
damage inflicted on the land is mitigated, that the land
T
he mining industry could significantly contribute can be restored to its natural state as much as possible,
to the prosperity of Canada’s Northern com- and that potential hazards are dealt with effectively.
munities over the coming decades. As demand Mining operations on the land are only temporary, but
for Canada’s minerals and metals continues to increase the effects can last for many decades if not addressed
around the world, and with the proper factors conducive to properly. Interviewees for this report explained that

mining companies today take into account the need of stability of embankments, a site characterization
for sustainable operations and minimizing their impacts plan, and financial assurance. Site-specific air and sew-
over the course of their stay and beyond. This focus on age permits may be required for certain jurisdictions.”4
sustainable mining is a cost of doing business not only
in Canada but around the world. It is part of the licence Closure and remediation plans must be accompanied by
to operate and to maintain a positive reputation so that financial guarantees such as bonds or deposits. These
communities and governments will accept mining activ- ensure that funds will be available to rehabilitate the
ity in their regions. site and that the costs of cleanup and rehabilitation are
borne by the company. When the company has com-
The preparation for the mine’s closure and remediation pleted site cleanup and reclamation, its bond or deposit
must begin in the mine’s planning stages. This is done is returned. If a company is unable or unwilling to clean
when the mining company is preparing the environmental up the site, the mine is considered orphaned or abandoned,
impact assessment and relays the company’s estimated and its liability and clean-up costs are transferred to the
costs of closure.1 All Canadian provinces and Yukon have respective jurisdiction.5
their own acts and regulations with respect to closure
planning, while the federal government regulates the
closure of mining projects in the Northwest Territories, Closure plans encompass several aspects, including the
Nunavut, and on First Nations reserve lands. Closure actual shutdown, the site closure, and post-closure meas-
plans must be approved by the appropriate regulatory ures, as some sites require long-term monitoring.
boards, which vary by jurisdiction.2 Mining legislation
in all Canadian jurisdictions “requires mine developers
to submit mine closure plans that describe how the site However, there are obstacles to implementing clos-
will be rehabilitated throughout its life cycle, how it ure plans. A recent report by the National Orphaned/
will be decommissioned when mining activities end, Abandoned Mines Initiative (NOAMI) notes that regula-
and to post a financial surety to ensure these activities tory risks, such as a change in procedures as it relates to
are carried out.”3 acceptable mine closure or regulatory overlaps between
agencies, can delay plans and create confusion. These
Closure plans encompass several aspects, including regulatory issues can also impose an additional finan-
the actual shutdown, the site closure, and post-closure cial burden on companies. Interviewees emphasized
measures, as some sites require long-term monitoring and the importance of these closure plans, but mentioned
stabilization. These plans must be approved by govern- the need for greater clarity and frameworks around
ment before mining development can begin. Furthermore, these activities.
government agencies will often issue new permits for
the decommissioning of the mine and for site cleanup. Another potential obstacle to sustainable mine closure
They may outline “additional site-specific conditions is when commodity prices fall dramatically and remain
and methods for reclamation of open pits, underground low for an extended period of time. In such circumstances,
openings, tailings, and waste rock,” and include “an companies could go into bankruptcy, leaving them with-
Environmental Effects Monitoring Plan, an assessment out the financial resources or capacity to comply with
regulations. Other potential obstacles include environ-
mental alterations due to climate change and natural
1 Natural Resources Canada, Mining Information Kit for Aboriginal
Communities, 78.
4 Ibid.
2 Ibid.
5 Cowan, Mackasey, and Robertson, The Policy Framework
3 Natural Resources Canada, Mining Sector Performance Report in Canada for Mine Closure and Management of Long-Term
1998–2008, 20. Liabilities, 4–6.

hazards such as storms that cause acid rock drainage with soil contamination. Much of the former mine site
or heavy metal seepage. Such events can be difficult to was turned over to the local community. A soccer field
predict and mitigation hard to plan for. In some instances, was constructed, and office buildings will be repur-
parts of the mine site require long-term monitoring. For posed and used for local educational institutions. As
example, mining companies must ensure that tailings well, the tailings pond will be used as a landfill site.8
ponds do not leak and that mining shafts remain stable.6 This successful reclamation effort demonstrates what
companies could do here in Canada as mines are reach-
Mining companies must review their closure plans and ing their end-of-life cycle.
adjust them as necessary when new information and
technologies are made available. When mines are at the Natural Resources Canada’s Green Mining Initiative
production stages, new data about the mine site and its can also help provide innovative solutions when dealing
surrounding environment may dictate changes as to how with closures. The initiative hopes to “look at technolo-
these mines can best be remediated. New technologies gies for mine rehabilitation, habitat restoration and
can also offer better solutions than those proposed before ecological reclamation, and climate change adaptation
mines were developed. Before they begin the mine clos- by the mining industry.”9 This work could potentially
ure processes, mining companies must submit changes address some of the challenges proponents face
to their final closure plans to governments for regula- with rehabilitation.
tory approval.
The Polaris mine in Nunavut is a good example of Understanding the Impacts of Mine
successful site rehabilitation. When the mine closed in Closure on Northern Communities
2002, the communities of Grise Fiord and Resolute Bay
assisted the company in the rehabilitation of the mine Interviewees for this report discussed the need to
site. Consultations with these communities ensured that engage the local community in mining closure and
the company took into account the future uses of the work cooperatively to mitigate damages. This commun-
land and its historic importance to the residents. Much ity engagement is important not only for environmental
of the on-site infrastructure was decommissioned, but management but also for the socio-economic impact
plans were made for ongoing monitoring of water and that mine closures have on local communities.
soil contaminates. The site remediation, along with the
monitoring programs provided jobs for local residents, When a mine is in operation, local communities can
further aiding the transition of these communities.7 benefit immensely from the opportunities the mine offers.
Hired residents earn high incomes working for a mining
Examples of the successful closure and rehabilitation of company. Local businesses grow, thanks to contracts to
international mine sites could also serve as models for provide supplies and services for the mining operation.
Canadian mine sites in the future. In 2006, for instance, They also benefit from the purchase of goods and servi-
Xstrata Zinc closed its Reocín mine in Spain, which ces by residents who earn incomes through mining. As
had been in operation for nearly 150 years. The com- local firms grow, they provide jobs to residents, who
pany worked to meet—and exceed—all regulatory benefit from earning wages. Local communities can also
requirements relating to closure. An ongoing water take advantage of transportation infrastructure, and occa-
monitoring program ensures that local water sources sionally energy and communications infrastructure asso-
remain uncontaminated and that there are no issues ciated with mining in their region. Mining companies
6 Cowan, Mackasey, and Robertson, The Policy Framework 8 Xstrata, Xstrata Zinc’s Successful Mine Closure After 147 Years
in Canada for Mine Closure and Management of Long-Term of Operation.
Liabilities, 4–20.
9 Natural Resources Canada, Green Mining Initiative to Reduce
7 Natural Resources Canada, Mining Information Kit for Aboriginal Mining’s Environmental Footprint. See also Natural Resources
Communities, 87. Canada, Sustainable Development.

can help local communities acquire much-needed infra- mining workers lose their jobs or move elsewhere.
structure such as health care facilities, schools, and These local businesses may be forced to lay off their
recreational amenities. own employees. They may even have to close if they
cannot find enough business to replace that from the
But when the mine exhausts its resources and produc- mine. This is especially noticeable when the region
tion is no longer economically viable, it must close. As is dependent on a single mine.
discussed in previous sections, many Northern commun-
ities have historically been adversely affected by mine In many instances, infrastructure such as roads and
closure and abandonment. The financial implications communication towers may remain after the mine closes,
of mine closure on a community can be dramatic and, but communities may not have the financial capacity to
in some instances, can linger for many years. A mine maintain it. Eventually the infrastructure deteriorates and
closure can have deep and immediate impacts on the becomes unusable unless funding can be found. This is
mine’s employees and their families. While workers often especially true for a community reliant on a single mine
expect the mine will eventually close, many are unprepared that shuts down permanently. Unless it finds other eco-
when it does. The transition for laid-off workers can be nomic development opportunities or government support,
difficult for reasons other than the loss of good incomes. the community is faced with crumbling infrastructure
Mine closure can lead to stress and anxiety for workers, that it once benefited from.
as many are unsure what will happen next.10 Obviously,
this can be especially difficult for workers in remote It is important for mining companies and governments
areas, as there is often only one mine that supports the to understand the full socio-economic implications of
local economy. mine closure. It is essential that mining companies plan
and act on environmental matters; and they must also
consider the impacts that mine closure will have on local
After a mine closes, infrastructure—such as roads and communities. Governments also need to understand the
communication towers—may remain, but communities full implications of closure on local communities faced
may not have the financial capacity to maintain it. with a legacy of socio-economic problems. These are
issues that government may need to help resolve.
Aboriginal workers can find the closure of the mine Consultation by a mining company early on—at the
particularly difficult. Many have chosen to work at the exploration stage and before mine development occurs—
mine because of its proximity to their communities. as well as throughout the mine’s development and oper-
This allows them to participate in cultural and trad- ational stages is a factor critical to success. Consultation
itional activities and to retain their close attachment to needs to continue during the closure planning process
the land. However, when the mine closes, the choices and the execution of these plans. Enough lead time must
can be extremely stressful, especially if there are no be given so that the community can prepare. The com-
jobs in their communities other than those in the trad- pany must also consult with all key stakeholders in the
itional economy of hunting, fishing, and trapping. local community in order to understand its issues, needs,
and possible opportunities and should carry out a social
Local businesses are equally impacted by the mine impact assessment of the mining closure. Companies
closure. Firms that have depended on the mine as their like Barrick11 and De Beers,12 for example, carry out
major or only client must find new business opportun- such assessments and integrate them with their environ-
ities, or close as well. Those that supplied goods and mental assessments as part of their mining closure plan-
services to local residents see their revenues drop as ning processes.
11 Barrick, Community.
10 Mining Industry Human Resources Council, Mining Workforce
Transition Kit, Module 2, 8–10. 12 De Beers, Planning for Closure.

The community and the mine’s workers need to be can competing companies be encouraged to collabor-
given sufficient lead time about the mine closure, as ate and coordinate their investment decisions in such
companies must consider the issues of employee turn- circumstances? Can governments play a role? Will
over and morale. Low morale can impact productivity. the capacity constraints of regulators in environmental
For short-life mines, 12 months notice seems appropriate;13 assessment processes stagger these new mines anyway
for mines that have been in existence for decades, much because they cannot assess all mining projects at the
longer lead times should be considered. same time? These are some of the questions that need
further analysis by region to explore whether or not
staggering new mining developments is feasible.
Identifying Community Business
Opportunities and Challenges
After Closure The community and the mine’s workers need to be given
ample lead time about a mine closure, as companies must
A community’s needs and potential opportunities depend consider the issues of employee turnover and morale.
on the region’s resource development potential, avail-
able infrastructure, residents’ employability skills and
work experience, entrepreneurial capacity, and leader- Furthermore, mining communities in geologically rich
ship. All these factors play a critical role for local com- regions that already have a skilled workforce, local busi-
munities as they define their future following closure. nesses with experience supplying to mining companies,
and infrastructure conducive to mining, can find them-
Geography and geology will always play a determining selves in an excellent position to achieve long-term
role in a Northern community’s ability to create a sus- prosperity. As one mine is planning for closure, new
tainable and prosperous future. If a community finds mines could be developed. Governments need to pro-
itself in a geologically rich region, the potential exists mote the natural, human, and infrastructure assets that
for more mining developments in the future. Should a region with such communities can offer to prospective
exploration projects find viable reserves, an existing mining companies.
mine could extend its life or future mines could be
developed in the area. However, the region could also Geography also plays a role in looking at economic
face the boom-bust cycle of many mines opening and development options beyond mining. If a Northern
eventually closing around the same period of time. community no longer has important mineral deposits
but is endowed with forests, fertile land, or other nat-
The staggering of mine openings in a region rich with ural assets that can be developed, it has the opportunity
mineral deposits could provide an alternative to this situ- to transform itself from a mining community to another
ation. This would provide long-term economic security resource-based community such as lumber, agriculture,
and stability to local communities. It would also allow or commercial fisheries. Proper planning of an eventual
communities, governments, and companies to plan for mine closure can provide such a community with the
the future. As well, mining companies would benefit opportunity to develop other forms of natural resources.
from a long-term supply of local skilled workers and It would require seeking new forms of corporate invest-
alleviate the problems of labour shortages. Sometimes ments, possible retraining of its local workforce, and a
the timing of mining investments just happens to stag- refocus of its businesses. Governments would need to
ger mine openings. However, it is likely that mining step in and help the community in its transformation and
companies will be interested in developing their own possible economic diversification. This support could
deposits in a geologically rich region around the same include community funding and promotion to targeted
period of time when commodity prices are high. How industrial sectors. As part of its closure plan, the mining
company could offer seed funding for local businesses
13 Laurence, Optimising Mine Closure Outcomes for the Community, 10. that want to invest in other potential resource sectors.

Communities such as Sudbury are blessed by their geog- had committed local leadership and provincial govern-
raphy and rich geology, and have successfully sustained ment support.17 Likewise, Goldcorp closed its San Martin
local wealth after the closure of some of their mines. mine in Honduras but helped local communities with
For example, other mines in the greater Sudbury area alternative economic opportunities such as the opening of
have opened and so mining activity is still part of the the San Martin Ecology Centre as an eco-tourism venue.
Sudbury economy. The city has become an important It also helped develop agri-businesses in the region.18
hub for mining technology research and development,
and has been able to attract and retain skilled and talented Rankin Inlet in the Kivalliq Region is a community
workers for this area. Sudbury also provides supplies and that began as a mining town in the late 1950s. The mine
services for the mining sector. It is a well-established closed in 1962, leaving the town a diesel generator and
urban centre, capable of supporting the demands of new limited infrastructure. Remediation at the mine only
mining developments and with much of the necessary occurred in the 1990s, but the town’s entrepreneurial
infrastructure in place.14 spirit helped it transition into other economic activities,
and government has made it its centre for Kivalliq Region.
With a population of just under 2,500 today, Rankin Inlet’s
Some remote Northern communities that lack sustainable economy includes government services, Inuit crafts,
economic opportunities can’t recover from a mine closure. transportation services for the region, and fishing.19
However, because of a lack of sustainable economic

However, a community that has no other potential min- opportunities, some remote Northern communities will
ing projects within the region and that lacks other types not be able to recover from a mine closure. They will
of natural resources that can feasibly be exploited will either become ghost towns or they will seek ways to
have great difficulty finding other business opportunities continue to sustain themselves with traditional activities
as significant as the mine. Similarly, if the community is such as hunting, fishing, and trapping and, in some cases,
remote and has little infrastructure, it will be challenging government support. For example, Uranium City in
for it to find any form of new economic opportunities.15 Northern Saskatchewan was a booming town up until the
But a community with imagination, strong leadership, 1980s. However, when all mining activity ceased, the
access to reliable transportation and broadband communi- town had nothing left to rely on. Today, nearly 30 years
cation infrastructure, and government support can often after the mines closed, the town of a handful of residents
overcome the lack of natural resource assets. Communities is hopeful it can reinvent itself as an eco-tourist destina-
need leaders and entrepreneurs who are willing to seek tion.20 But the isolation of this community, which has
out new and innovative opportunities for their commun- all-year access only by air, a winter road that operates
ities. All proponents—the mining company, governments, for only about a month each year, and crumbling infra-
and community leaders—must work together to help find structure, makes it extremely difficult to find new eco-
and foster these innovations. The mining company or nomic opportunities.21
governments need to support these undertakings finan-
cially to have a chance of success. For example, Elliot
Lake in Northern Ontario was successfully able to reinvent
17 Provincial and Territorial Departments Responsible for Local
itself as a retirement community and all-season tourism
Government, Resiliency and Recovery Project Committee, Facing
destination after uranium mines in the area closed.16 It the Challenge of Industry Closure, 34–35.
18 Goldcorp Inc., “Understanding Mine Closure.”
14 MiningWatch Canada, No Rock Unturned, 17. 19 Rankin Inlet, Rankin Inlet History.
15 Provincial and Territorial Departments Responsible for Local 20 Provincial and Territorial Departments Responsible for Local
Government, Resiliency and Recovery Project Committee, Facing Government, Resiliency and Recovery Project Committee, Facing
the Challenge of Industry Closure, 23. the Challenge of Industry Closure, 60–61.
16 MiningWatch Canada, No Rock Unturned, 17. 21 Ibid.

A community should plan for the eventual closure of The mining company should also engage community
the mine and examine other economic development leaders in the development of its own closure plans.
options. It should explore economic diversification, By working together with the community, the company
develop and implement strategies to further exploit its will gain an appreciation of the challenges and oppor-
natural regional resources, or investigate other goods tunities the community will face and will be better pos-
and services it can produce and sell. It needs the sup- itioned to determine the level of assistance it can offer.
port of governments and mining companies to develop In alignment with the mining company’s closure plans,
and implement economic development plans. And if the community can develop its own plan for the eventual
no viable economic future exists after all options have mine closure, exploring possible economic opportunities
been examined, such communities must prepare them- and identifying the requirements to realize these.
selves for the inevitable loss of economic activity and
population. It may return to its pre-mining roots, per-
haps with improved infrastructure and social services If the mining company leaves the transportation, energy,
inherited from the mine operations, but it will need initial and communication infrastructure in place after the mine
support from the mining company and ongoing help from closes, it could assist the affected communities in attract-
governments to meet the social needs of residents. ing new forms of investment.
The Roles of Mining Companies and The public and private sectors can work in conjunction
Governments in Mine Transition with other local businesses to find alternative and sec-
ondary industries, including those related to closure,
A mining company plays an important role in helping decommissioning, and reclamation efforts.22 New busi-
communities plan for the eventual mine closure, and in ness opportunities can arise from community economic
assisting in its transition. It starts while mining develop- diversification plans, and the mining company can pro-
ment and production occur, by building up local capacity. vide partial funding to help start these business ventures.
The company can support the education of local youth This “works especially well in developing communities
and help them stay in school; develop the employability where the cost of this initiative is small but the potential
skills and work experience of the local workforce by sustainability gains are significant.”23
employing them at the mine site; and encourage entre-
preneurship by giving contracts to local suppliers and Leaving transportation, energy, and communication
mentoring local business owners. These businesses also infrastructure for the communities could assist them in
hire people who gain skills through their work experi- attracting new forms of investment. An inventory of the
ence. The mining company can also build essential infra- infrastructure that will remain needs to be conducted in
structure that benefits the local community. All of these consultation with community leaders and be included as
actions taken while the mine is in operation will create part of the closure plans. Company homes can be offered
human capital and infrastructure assets that the community to the community or sold on the real estate market, if
can use as it transitions into other economic opportunities. one exists, as the mine begins to shut down and person-
nel leave. But in order to prevent a rapidly declining
Furthermore, IBAs can play an important role in assisting real estate market in the community, these homes
the transition of Aboriginal communities after a mine should be made available progressively.24
closes. Clauses included in these agreements could pro-
vide funds that support community projects or new local
infrastructure projects. As well, provisions could be made
to give Aboriginal communities the financial resources, 22 Natural Resources Canada, Mining Information Kit for Aboriginal
through revenues or investments, to support new busi- Communities, 81–83.
ness ventures. 23 Laurence, Optimising Mine Closure Outcomes for the Community, 10.
24 Ibid., 1–2.

Governments also play an important supporting role in today’s mining developments means that this type of
community transition. They can assist the community in arrangement is becoming more common, although it is
developing and implementing economic diversification disruptive to families. Relocation services, whether to
plans. Provincial/territorial governments could provide other mines or sectors, could be immensely useful.
funding to help build new businesses and support them
in accessing markets. These businesses, if successful, Aboriginal workers who have lost their jobs due to mine
would give the community opportunities to be self- closure may return to work in the traditional economy,
sustaining, requiring less social assistance by govern- as they had previously sustained themselves and their
ments in the future. communities by hunting, fishing, and trapping.26 Others
may have the opportunity to find work at other mine
sites, thanks to the fly-in, fly-out arrangements. Some
Even as they are preparing to leave, mining companies may have to leave their communities and even their
often assist workers after a mine closure to continue families behind for extended periods of time to work in
building positive relationships with the community. other regions. Leaving their community and their ances-
tral land to find work in other regions can be difficult.
Funds should also be made available for the first few Skills learned through an employee’s current work can
years after closure to help the community maintain be useful in helping them find jobs at other mine sites, or
remaining infrastructure, until it is able to maintain may be transferrable to other sectors. Mining compan-
them on its own. Governments should even consider ies can also assist employees during the mining closure
building new infrastructure such as all-season roads, process in a number of ways. They can help identify
where feasible, or broadband communications, if new career opportunities and provide out-placement
lacking, that could open the community to new services. Retraining and skills upgrading programs,
business opportunities. coupled with educational opportunities, could be bene-
ficial. Mining companies often support these types of
initiatives as a way of continuing to build positive rela-
Assisting Mining Workers tionships with the community, even as the companies
With Closure are preparing to leave.27
Mining workers must assess their options as a mine pre- Some companies aid employees in finding employment at
pares to close. Workers close to retirement may be in a their other mines. For example, Barrick Gold Corporation
financial position to live off their investments and pension offers job opportunities at its other operations, where
incomes. They often choose to stay in the local com- possible.28 At Xstrata Zinc’s Reocín mine in Spain, the
munity, as they have built their lives there.25 But others company helped employees find work at other mines
must inevitably find jobs in the local community or the company owned, either locally or elsewhere in the
elsewhere, or remain unemployed. Younger and highly world.29 Mine closure, decommissioning, and reclama-
qualified workers may find work at other mine sites or tion can provide jobs for some workers. Companies need
in other sectors in the region or elsewhere. Other workers trades people to dismantle and remove equipment; heavy
may choose to pursue studies outside of their community equipment operators to move earth and waste rock; tree
and will leave the town. The fly-in, fly-out model may
also be viable for some workers and their families, since 26 Ibid., 10.
mining companies no longer establish permanent cities 27 Mining Industry Human Resources Council, Mining Workforce
and towns around a mine site. The remote location of Transition Kit, Module 1, 6–7.
28 Barrick, Community.
29 Xstrata, Xstrata Zinc’s Successful Mine Closure After 147 Years
25 MiningWatch Canada, No Rock Unturned, 17. of Operation.

planters; and site security.30 There are also jobs in water Not all Northern communities will be able to achieve
sampling and analysis and in constructing drainage sys- a sustainable prosperous future from a single mine.
tems.31 While these opportunities may be temporary, they Sustainable prosperity will occur only in Northern regions
can help workers in their transition. Some employment that are blessed with rich natural resource assets that can
opportunities may be longer lasting. Ongoing environ- be developed. Communities may be able to prosper if
mental monitoring of the mine site and ongoing water they have, or can build, adequate infrastructure to
treatment may be required. Local employees may be best exploit economic opportunities beyond natural resource
suited to carry out these functions because of their prox- sectors and have access to markets to sell goods or ser-
imity and their knowledge of the area and mine site. vices. After the mine closes, these communities must
also retain their well-educated, skilled workforce and
Not only the mining company should be responsible for entrepreneurs.
helping mine workers in their transition; governments
also have a key role to play. In addition to providing If, after all efforts have been made, economic diversifi-
education and skills upgrading programs, governments cation is found to be impossible for a Northern com-
can provide job search assistance. For workers willing munity, the choices will be difficult. The community’s
to work outside their home region, they could provide economy will decline after the mine closes and skilled
financial support for travel expenses related to job search workers will leave. Some residents may decide to retire in
and for relocation expenses. Governments could also their community, and small businesses that supply local
promote the local pool of skilled mining workers to residents may be able to survive. But the community will
mining companies worldwide, especially since there ultimately need government support to maintain infra-
will be a growing shortage of that skilled workforce. structure and provide social assistance and services. One
option that may be extremely beneficial for communities
is adopting a fly-in, fly-out arrangement so that mine
A Sustainable Future for Mining workers can continue to live in their Northern commun-
in Canada’s North? ities while they work in other regions. However, mining
companies and governments will need to mitigate the
Is it possible to create a sustainable future for mining impact of shift work from fly-in, fly-out arrangements
in Canada’s North? While it may seem unattainable on workers, their families, and communities.
in view of the finite economic life of mines and their
environmental impacts, the answer can be positive if Mining companies, local communities, and governments
the following condition is met: proper action is taken to must work together to achieve a bright, sustainable future
ensure environmental sustainability throughout the min- for Canada’s North, its environment, and its residents. A
ing life cycle, including closure, decommissioning, and sustainable and prosperous future is not a given unless
reclamation. Moreover, closure plans for local commun- there is strong leadership, commitment, and determina-
ities need to be developed collaboratively and then exe- tion in seeking the best solutions to a range of concerns:
cuted in order to diversify local economies. addressing environmental issues related to all stages of
mining; building capacity in local communities; and
providing socio-economic benefits while mines are
30 Natural Resources Canada, Mining Information Kit for Aboriginal developed and operated. In the end, this requires a
Communities, 88. sustained and meaningful effort to develop and imple-
31 Ibid. ment successful closure plans for local communities.

Chapter 7
Conclusion and Recommendations
I
t is clear that the long-term trend in global demand
Chapter Summary and commodity prices looks promising for mining
development in Canada’s Northern regions. Although
Communities and industry can benefit enor-
short-term uncertainties resulting from the outcomes of the
mously from Canada’s mining potential through
global financial crisis are affecting some world markets,
responsible and sustainable practices. However,
the long-term outlook for global metal and non-metallic
all proponents must work together to address
mineral demand will likely be strong. This demand in
outstanding challenges.
the growth trend is due in part to the rapid industrializa-
Addressing some—or all—of the priorities tion and rise of the middle class in countries such as
can significantly improve the outlook for the China and India.
future of mining in Canada, for the industry
and communities alike.
It is obvious that the long-term trend in global demand
Findings suggest six key areas for policy rec-
and commodity prices looks very promising for mining
ommendations to support future sustainable
development in Canada’s Northern regions.
mining development in Canada’s North:
– Supporting a competitive business environ-
ment for the mining industry;
Increasing demand and the resulting high commodity
– Tackling infrastructure gaps and needs;
prices have pushed mining companies to search for
– Supporting recruitment initiatives aimed
important, new mineral deposits in more remote regions.
at women, new Canadians, youth, and
Previously underexplored regions are now being con-
Aboriginal workers;
sidered as areas to be explored for mineral reserves,
– Conducting meaningful community consul-
while previous reserves are being re-examined for new
tations and ensuring the implementation
potential. Canada’s Northern regions stand to benefit
of Aboriginal land claims and resource
from this exploration activity and possibly from future
development agreements;
mining development.
– Improving regulatory processes and per-
sonnel turnover in government regulatory
However, for communities and industry to benefit from
bodies; and
this enormous potential, several key actions need to be
– Ensuring further investments in geoscience.
taken to ensure that development happens in a responsible
and sustainable way. Much progress has been made over

the past several decades with regard to key challenges, tools they require to make informed decisions and help
such as community engagement and environmental pro- to demystify mining development. Communities will
tection. Likewise, the business climate in Canada has better understand what types of opportunities and chal-
been very stable, allowing for a greater openness for lenges mining projects may provide, as well as the poten-
development. But it is undeniable that great impedi- tial long-term impacts on the environment. A key solution
ments remain. All proponents and stakeholders must may be to conclude impact and benefits agreements in a
work cooperatively to overcome these challenges and more transparent manner. This will allow companies to
bring about a truly sustainable and prosperous future accommodate local residents’ needs, while giving com-
for the North’s communities. munities the chance to fully participate in negotiations
by drawing on other experiences and agreements.
Recommendations Greater Emphasis on Addressing

Infrastructure Gaps
Several important areas must be addressed in order The lack of adequate infrastructure is biggest major
to create or maintain the necessary conditions for obstacle to mining development in Canada’s North. The
more responsible mining development in Canada’s lack of transportation infrastructure, in particular, is a
North. Addressing some, or all, of these priorities can key impediment to mining development. Mining projects
significantly improve the outlook for the North’s—and require different infrastructure supports at different stages.
Northerners’—future. Taking action will also ensure Since transportation plays a vital role in determining
that communities are given the opportunity to thrive, whether a project will move forward, greater invest-
and that the natural environment will be protected for ments in the necessary infrastructure need to be con-
future generations. The following recommendations sidered. Government assistance or partnerships between
should be considered in light of the observations out- the public and private sector can help relieve the current
lined above and the broad context of Canada’s mining financial burden of construction costs placed on mining
potential provided in this report. companies. These types of investments will also serve
to make investment in Northern regions more attractive.
A Transparent and Integrated Approach
to Supporting a Competitive Business Power generation is another key infrastructure require-
Environment for the Mining Industry ment and a key impediment to mining development in
in Canada’s North Canada’s remote North. New mines in these regions often
Global demand for minerals and levels of exploration rely on their own power generation facility because local
activity in Canada’s North continue to be high. Supporting electric utilities are unable to meet their needs. The reli-
a competitive business environment in the North is cru- ance on diesel, however, incurs substantial costs and
cial in positioning Canada well in terms of increasing its considerations for companies. To decrease these costs,
mining output over the long term. This requires a trans- some companies are turning to renewable energy sources.
parent and integrated approach to addressing key challen- For example, Diavik Diamond Mine in the Northwest
ges. For example, legislation or practical arrangements Territories is building a wind farm with technology that
that encourage information sharing between proponents can operate in minus 40 degrees Celsius. Wind power is
and communities as well as between various levels of expected to reduce diesel energy used by the diamond
government will go a long way in helping to address mine by 10 per cent. Likewise, Goldcorp’s Musselwhite
some of the challenges around issues such as the grant- gold mining operation in Northern Ontario has turned
ing of permits, mine closure, environmental protection, to solar power to help heat its buildings. These renew-
the involvement and participation of Aboriginal groups, able resource projects are examples of possible ways to
and duplication of processes. Furthermore, transparent reduce energy costs while contributing to the develop-
and open communication among proponents, government of more sustainable operations across the North.
ments, and communities can provide all parties with the

Increased Support for Recruitment Initiatives More Efforts to Build Meaningful Community
Focusing on Women, New Canadians, Youth, Engagement, and Implement Aboriginal Land
and Aboriginal Workers Claims and Resource Development Agreements
Mining companies worldwide will soon be scrambling Building trust between mining companies and Northerners
to find skilled workers to meet the industry’s require- requires engaging and accommodating to the greatest
ments, as demand for metal and non-metallic minerals extent possible local communities affected by mining
are expected to increase. The limited available work- development. In addition to consulting and negotiating
force will lead to a global competition for talent and a with Aboriginal communities, mining companies need
potential challenge for mining companies operating in to demystify their mining activities. This includes pro-
Canada’s North. The potential to hire more Aboriginal viding Aboriginal and non-Aboriginal Northerners with
people in mining is significant, given their younger popu- adequate and factual information about mining projects.
lation demographics and the growth in Canadian mining Ensuring ongoing, concerted, and meaningful efforts to
that will take place near many Northern Aboriginal com- alleviate community concerns and to respond to com-
munities. But many Aboriginal people lack the education munity needs as best and as timely as possible is also
and training to meet the skill requirements of many pos- necessary. An important step in establishing positive
itions available within the industry. Under-represented relationships with Northern communities is to begin
groups, such as women, youth, and new Canadians could consultations at the outset of mining projects and to
also be a potential talent pool from which mining com- continue with frequent and respectful communications
panies can draw. throughout the life of the project.
Respectful and meaningful engagement also means

The roles of Aboriginal governments in the review of that governments and industry must address and respect
mining project proposals and the development of these Aboriginal rights. These rights are a reality that min-
projects need to be acknowledged and respected. ing companies must recognize at all levels of operation,
from exploring for deposits to the closing of exhausted
mines. However, further progress is required on imple-
There have been considerable difficulties in getting menting Aboriginal land claims and resource agreements
such groups to participate in the mining workforce. with respect to development. In particular, the roles of
Significant efforts by mining companies and govern- Aboriginal governments in the review of mining project
ments will be required to encourage more Aboriginal proposals and the development of these major resource
people and under-represented groups into available min- projects need to be acknowledged and respected. This
ing jobs. This will include efforts by the public and pri- will also help to clarify overlapping regulatory mandates
vate sector to provide the required education and training between Aboriginal, federal, and provincial/territorial
to workers when needed. Providing greater child care governments, ultimately working toward reducing the
options within communities could provide a solution for complexity and amount of time taken in the overall regu-
mothers who have to leave to work at mining sites. And latory review and approval processes of mining projects.
recognizing the credentials of foreign workers is crucial
for encouraging new Canadians to accept jobs in this sec- Reduce the High Turnover Rates of Personnel
tor. As well, partnerships between the public and private in Government Regulatory Bodies
sectors to ensure worksite integration and to assist workers The high turnover rates in government regulatory bodies
with everything from the application process to learning and departments create problems in the administration
new terminology would help workers better understand and enforcement of regulatory regimes and in getting
the industry. For young Canadians, increased, targeted new mining projects approved. The resulting capacity
outreach in high schools and programs that highlight constraints also add more time to regulatory processes
career options in the mining field would help break down and approvals. Having adequate numbers of qualified
many of the misconceptions young people have about and well-trained board members and staff helps to ensure
the industry, while broadening their career horizons. that regulatory review boards are neutral with respect to

economic development. It also enables these boards mineral exploration activities by sharing geological infor-
to make consistent and predictable decisions and have mation on the most promising deposit locations. The fed-
sufficient resources to provide regulatory decisions in a eral government, for example, committed $100 million
timely manner. While some turnover is to be expected, between 2008 and 2013 for geo-mapping in the Arctic,
it would be wise for governments and regulatory bodies focusing particularly on the Northwest Territories and
to ensure that adequate training, mentoring, and other Nunavut. Likewise, provinces and territories have signifi-
knowledge transfer mechanisms are in place so that cant geological data for their Northern regions that can
new recruits can assume their responsibilities as be used by exploration companies. Increased access to
seamlessly as possible. data can help the private sector reduce the risks and costs
associated with exploration activities and increase their
Further Government Investments chances of finding significant high-quality mineral deposits.
to Gather GeoScience Data in Support
of Mineral Exploration
The discovery of important high-quality mineral deposits
large enough to be mined requires significant exploration >>Tell us how we’re doing—rate this publication.
activity. Governments can assist the private sector in their www.conferenceboard.ca/e-Library/abstract.aspx?did=5306

Appendix A
Bibliography
Aboriginal Affairs and Northern Development Canada. Aboriginal Engagement Task Group of the
Aboriginal Consultation and Accommodation: Updated Intergovernmental Working Group on the Mineral
Guidelines for Federal Officials to Fulfill the Duty to Industry. Aboriginal Engagement in the Mining and
Consult. Aboriginal Affairs and Northern Development Energy Sectors: Case Studies and Lessons Learned.
Canada, 2011. www.aadnc-aandc.gc.ca/DAM/DAM- 2008. www.nrcan.gc.ca/mineraux-metaux/sites/
INTER-HQ/STAGING/texte-text/intgui_1100100014665_ www.nrcan.gc.ca.minerals-metals/files/files/pdf/
eng.pdf. abor-auto/stu-etu-eng.pdf.
—. Amendments to the Nunavut Land Claims Agreement. Agnico-Eagle Mines Limited. 2011 Annual Report.
www.aadnc-aandc.gc.ca/eng/1100100030970. Toronto: Agnico-Eagle Mines Limited, 2012.
www.agnico-eagle.com/files/AEM-AR-apr-25-2012/
—. “Discovery and Advanced Exploration.” Stages docs/AR%20Full%20AEM.pdf.
of Mineral Exploration and Development. 2007.
www.aadnc-aandc.gc.ca/eng/1100100023711#chp2. —. Corporate Responsibility: Community
and Environmental Stewardship. www.agnico-
—. Fact Sheet: Aboriginal Self-Government. eagle.com/Theme/Agnico2/files/AR2010/corporate-
www.aadnc-aandc.gc.ca/eng/1100100016293/ responsibility.html.
1100100016294.
—. Good Neighbour: 2010 Corporate Social
—. Fact Sheet: Implementation of Final Agreements. Responsibility Report. Toronto: Agnico-Eagle Mines
www.aadnc-aandc.gc.ca/eng/1100100030580/1100100 Limited, 2011. www.agnico-eagle.com/Theme/Agnico2/
030581. files/csr_reports/2010/AEM_2010_CSR_en_v06.pdf.
—. Negotiation Tables. www.aadnc-aandc.gc.ca/eng/ —. Measuring Up: 2011 Corporate Social

1346782327802/1346782485058. Responsibility Report. Toronto: Agnico-Eagle Mines
Limited, 2012. www.agnico-eagle.com/Theme/Agnico2/
—. Nunavut Surface Rights Tribunal. files/csr_reports/2012/AEM_CSR2011_PDF.pdf.
www.aadnc-aandc.gc.ca/eng/1100100011186.
Barrick. Community: Mine Closure. www.barrick.com/
responsibility/community/default.aspx.

BC Hydro. Northwest Transmission Line Project. Canadian Environmental Assessment Agency.

May 14, 2012. www.bchydro.com/energy_in_bc/ Backgrounder: Public Consultation on the Diavik
projects/ntl.html. Diamonds Project. www.ceaa.gc.ca/default.asp?lang=En&
xml=55B49D14-A121-43BF-82B6-6804ADD0A7A0.
Bouw, Brenda. “Miners Turn to Renewable Energy to
Cut Costs.” The Globe and Mail, November 15, 2011. —. “Use of Federal-Provincial Cooperation Mechanisms in
www.theglobeandmail.com/report-on-business/industry- Environmental Assessments Pursuant to the Canadian
news/energy-and-resources/miners-turn-to-renewable- Environmental Assessment Act.” Operational Policy
energy-to-cut-costs/article1359140/. Statement. Ottawa: Public Works and Government
Services Canada, 2011. http://publications.gc.ca/
Bristow, Marta, and Vijay Gill. Northern Assets: collections/collection_2012/ec/En106-89-2011-eng.pdf.
Transportation Infrastructure in Remote Communities.
Ottawa: The Conference Board of Canada, 2011. Canadian Institute of Mining, Metallurgy and
Petroleum. HR Outlook: Mining Essentials—12 Weeks
Canada Mining Innovation Council. Green Mining Can Change the Future: www.cim.org/en/Publications-
Initiative. www.cmic-ccim.org/en/pancanadiannetwork/ and-Technical-Resources/Publications/CIM-Magazine/
green_mining_initiative.asp. November-2011/Columns/HR-Outlook.aspx.
—. Mission & Vision. www.cmic-ccim.org/en/about/ CBC News. “Feds to Start Talks on Merging N.W.T.
mission_vision_values.asp. Regulatory Boards.” CBC News, January 7, 2012.
www.cbc.ca/news/canada/north/story/2012/01/07/
Canada’s 4th National Report to the United Nations north-nwt-regulatory-boards.html.
Convention on Biological Diversity. www.ec.gc.ca/
Publications/6C3D4D03-AAE0-4C31-84F4- —. “Ottawa to Slash Environment Review Role.” CBC
81772EE981B7/CanadasFourthNational News, April 17, 2012. www.cbc.ca/news/canada/
ReportToTheUnitedNationsConventionOn story/2012/04/17/environmental-reviews.html.
BiologicalDiversity.pdf.
—. “Telesat to Spend $40 Million to Expand Broadband
Canadian Business Ethics Research Network. De Beers in Arctic.” CBC News, February 2, 2012. www.cbc.ca/
Canada’s Perspective: Working Within and Beyond the news/canada/north/story/2012/02/02/north-telesat-
System. www.cbern.ca/research/projects/workspaces/ expansion.html.
cura_project/case_studies/de_beers_canada_
perspective/. Ceballos, Arnold. “Supreme Court of Canada Clarifies
‘Duty to Consult.’” The Lawyers Weekly, November 12,
—. K.I. vs. Platinex: A “Worst Case” Example of 2010. www.lawyersweekly.ca/index.php?section=article
Community Relations. www.cbern.ca/research/projects/ &articleid=1291.
workspaces/cura_project/case_studies/ki_vs_platinex/.
Cliffs Natural Resources Inc. Cliffs Chromite Project:
—. Moose Cree First Nation. www.cbern.ca/research/ Project Description Summary—Update #1. October
projects/workspaces/cura_project/case_studies/moose_ 2011. www.cliffsnaturalresources.com/EN/NewsCenter/
cree_first_nation/. MediaResources/Documents/Cliffs%20Chromite%20
Booklet%20-%20Feb4%20E%20-%20web.pdf.
Canadian Council of Ministers of the Environment.
Backgrounder: Environmental Assessment Cobalt Mining Legacy. Introduction.
Recommendations. www.ccme.ca/assets/pdf/ea_ www.cobaltmininglegacy.ca/index.php.
backgrounder_e.pdf.

—. Tailings of the Cobalt Area. Diavik Diamond Mine. Building Northern

www.cobaltmininglegacy.ca/tailings.php. Communities. www.diavik.ca/543_building_northern_
communities.asp.
Cook, Brent. The Odds and Opportunities in the Junior
Miners. www.explorationinsights.com/pebble.asp? —. Community Investment. www.diavik.ca/ENG/ourap-
relid=2408. proach/community_investment.asp.
Cornish, Christopher. Mapping the Road Ahead: Dungan, Peter, and Steve Murphy. Ontario Mining:
Finding Common Ground on Resource Revenue A Partner in Prosperity Building—The Economic
Sharing. Aboriginal Relations Consulting, 2006. Impacts of a “Representative Mine” in Ontario.
Toronto: Ontario Mining Association, 2007.
Cowan, W. R., W.O. Mackasey, and John G.A. www.oma.on.ca/en/ontariomining/resources/
Robertson. The Policy Framework in Canada for Mine RepMineFinalReportDec07.pdf.
Closure and Management of Long-Term Liabilities:
A Guidance Document. Sudbury: Cowan Minerals Environics Research Group. SNOW: Survey of
Ltd., 2010. www.abandoned-mines.org/pdfs/Policy Northerners’ Outlooks and Wants—2011 Public
FrameworkCanforMinClosureandMgmtLiabilities.pdf. Opinion Survey of Northern Canadians. Prepared for
The Conference Board of Canada’s Centre for the
De Beers. Planning for Closure. www.debeersgroup. North. Ottawa: The Conference Board of Canada,
com/Sustainability/communities/Planning-for-Closure/. Centre for the North, 2011.
De Beers Canada. Education and Training. Environment Canada. Summary Review of Performance
www.debeerscanada.com/files_3/education.php. of Metal Mines Subject to the Metal Mining Effluent
Regulations in 2010. www.ec.gc.ca/doc/publications/
—. “Employees.” 2010 Report to Society. pollution/COM1413/p6_2e.htm.
www.debeerscanada.com/files_3/pdf_
documents/2010rts/09_employees.pdf. —. Why Create Protected Areas? www.ec.gc.ca/ap-pa/
default.asp?lang=En&n=7FC45404-1#a2.
—. “Communities.” 2010 Report to Society.
www.debeerscanada.com/files_3/pdf_documents/ Ernst & Young. Business Risks Facing Mining
2010rts/10_communities.pdf. and Metals 2011–2012. EYGM Limited, 2011.
www.ey.com/Publication/vwLUAssets/Business_risks_
—. About the Snap Lake Mine. www.debeerscanada.com/ facing_mining_and_metals_2011-2012/$File/Metal_
files_3/snap-lake-mine.php. Mining_paper_02Aug11_lowres.pdf.
Deloitte. Tracking the Trends 2011: The Top 10 Issues Faille, Max, and François Dandonneau. Aboriginal
Mining Companies Will Face in the Coming Year. Deloitte Impact Benefit Agreements. http://m.gowlings.com/
Global Services Limited, 2010. www.deloitte.com/ knowledgeCentre/publicationPDFs/IBA-January-11-
assets/Dcom-Canada/Local%20Assets/Documents/ Webinar.pdf.
EandR/Mining/ca_en_energy_Tracking_the_
trends_2011_113010.pdf. Faro Mine Remediation Project. Project: Challenges.
www.faromine.ca/project/challenges.html.
Devlin, Christopher. Crown Delegation and the Duty to
Consult: Delegatus Potest Delegare (Sort of). Victoria:
Devlin Gailus, June 3, 2010. www.devlingailus.com/
pdfs/Crown_Delegation_and_the_Duty_to_Consult.pdf.

Federal, Provincial and Territorial Social Licence Task Hipwell, William, Katy Mamen, Viviane Weitzner,
Group. Mining Sector Performance Report 1998–2008. and Gail Whiteman. Aboriginal Peoples and Mining
2010. www.nrcan.gc.ca/sites/www.nrcan.gc.ca.minerals- in Canada: Consultation, Participation and Prospects
metals/files/pdf/mms-smm/pubr-pubr/pdf/EMMC_ for Change. Working Discussion Paper, Ottawa:
english.pdf. North-South Institute, 2002. http://metisportals.ca/
MetisRights/wp/wp-admin/images/Aboriginal%20
Fisheries and Oceans Canada. Metal Mining Peoples%20and%20Mining%20in%20Canada.pdf.
Effluent Regulations. www.dfo-mpo.gc.ca/habitat/
role/141/1415/14156-eng.htm. Hoefer, Tom. “Mining in Nunavut: Getting Your Share
of Major Developments.” Nunavut Trade Show. Held at
Fournier, Stefan. Getting It Right: Assessing and Iqaluit, September 27–29, 2011. www.baffinchamber.ca/
Building Resilience in Canada’s North. Ottawa: The sites/baffinchamber.ca/files/Chamber_of_Mines_Tom_
Conference Board of Canada, 2012. Hoefer.pdf.
Gibson, Ginger, and Ciaran O’Faircheallaigh. IBA Howard, Alison, Jessica Edge, and Douglas
Community Toolkit: Negotiation and Implementation Watt. Understanding the Value, Challenges, and
of Impact and Benefit Agreements. Toronto: Walter Opportunities of Engaging Métis, Inuit, and First
and Duncan Gordon Foundation, 2010. Nations Workers. Ottawa: The Conference Board
www.ibacommunitytoolkit.ca/pdf/IBA_ of Canada, 2012.
toolkit_March_2010_low_resolution.pdf.
Indian and Northern Affairs Canada. Exploration and
Goldcorp Inc. “Environmental Stewardship, Energy: Mining on Crown Lands in Nunavut Guidebook. Ottawa:
Energy Initiatives at Musselwhite.” 2010 Online Public Works and Government Services Canada, 2005.
Sustainability Report. www.goldcorp.com/Theme/ www.aadnc-aandc.gc.ca/DAM/DAM-INTER-NU/
GoldCorp/files/annual_reports/Report2010/6_energy.htm. STAGING/texte-text/mng_1100100027834_eng.pdf.
—. “Understanding Mine Closure.” Above Ground Kesler, Stephen E. “Mineral Supply and Demand Into
Online. www.goldcorp.com/blog/Articles-Details/2012/ the 21st Century.” In Proceedings for a Workshop on
Understanding-Mine-Closure/default.aspx. Deposit Modeling, Mineral Resource Assessment, and
Their Role in Sustainable Development. Edited by
Government of Northwest Territories. Devolution of Joseph A. Briskey and Klaus J. Schulz. Reston, VA:
Lands and Resources in the Northwest Territories. U.S. Geological Survey, 2007. http://pubs.usgs.gov/
http://devolution.gov.nt.ca/resource-revenue-sharing/ circ/2007/1294/circ1294.pdf.
existing-resource-revenue-sharing-agreements/.
Kharas, Homi. The Emerging Middle Class in
Government of Quebec. Plan Nord. Transportation and Developing Countries. Working Paper No. 285,
Communications: Telecommunications Infrastructure. Paris: OECD, 2010.
www.plannord.gouv.qc.ca/english/transportation/
infrastructures.asp. Kivalliq Mine Training Society. Programs and
Applications: Youth in Mining. www.kmtsociety.com/
Hatch. “Arctic Conditions a Challenge for Meadowbank applicants.html.
Mine.” Hatch Report, July 2009. www.hatch.ca/news_
publications/hatch_report/hr_july2009/hatch_report_ KPMG. A Guide to Canadian Mining Taxation.
july2009.pdf Toronto: KPMG, September 2011. www.kpmg.com/ca/
en/issuesandinsights/articlespublications/pages/a-guide-
to-canadian-mining-taxation.aspx.

Land Claims Agreements Coalition. Modern Treaties. —. Mining Workforce Transition Kit. www.mihr.ca/en/
www.landclaimscoalition.ca/modern-treaties/. publications/Workforce_Transition_Resources.asp.
Laurence, David C. Optimising Mine Closure Outcomes —. Take Action for Diversity: Research Report.
for the Community: Lessons Learnt. Sydney: University Mining Industry Human Resources Council,
of New South Wales. www.mining.unsw.edu.au/sites/ 2011. www.mihr.ca/en/resources/MiHR-Shift_
default/files/laurence3.pdf. TakeActionforDiversity_2011_ENG.pdf.
Major Projects Management Office. About MPMO. MiningWatch Canada. Mining in Remote Areas:
www.mpmo-bggp.gc.ca/index-eng.php. Issues and Impacts. A Community Primer. Ottawa:
MiningWatch Canada, 2001. www.miningwatch.ca/
Martin, Heidi. Building Labour Force Capacity in sites/www.miningwatch.ca/files/mine_impacts_kit_0.pdf.
Canada’s North. Ottawa: The Conference Board of
Canada, 2011. —. No Rock Unturned: Revitalizing the Economies
of Mining Dependent Communities. Ottawa:
McCrank, Neil. Road to Improvement: The Review of MiningWatch Canada, 2003. www.miningwatch.ca/
the Regulatory Systems Across the North. Ottawa: The sites/www.miningwatch.ca/files/No_Rock_
Government of Canada, 2008. Unturned%20(1).pdf.
McMahon, Fred, and Miguel Cervantes. Fraser —. Two Million Tonnes a Day: A Mine Waste
Institute Annual Survey of Mining Companies Primer. Ottawa: MiningWatch Canada, 2009.
2011/2012. Vancouver : Fraser Institute, 2012. www.miningwatch.ca/sites/miningwatch.ca/files/Mine_
www.fraserinstitute.org/uploadedFiles/fraser-ca/ Waste_Primer.pdf.
Content/research-news/research/publications/
mining-survey-2011-2012.pdf. Ministère des Ressources naturelles et de la Faune.
Profil des retombées économiques des activités et des
Mining Association of British Columbia. “Mining in investissements du secteur minier au Québec. Québec:
BC: The Opportunity.” Generate 2011: Clean Energy Gouvernement du Québec, 2011. www.mrn.gouv.qc.ca/
BC. Held at Vancouver, September 24–27, 2011. publications/mines/statistiques/etude-impact-
www.cleanenergybc.org/media/Panel_3-Ben_ economique-secteur-minier.pdf.
Chalmers_MABC.pdf.
—. Preparing the Future of Québec’s Mineral Sector:
Mining Industry Human Resources Council. Québec Mineral Strategy. Gouvernement du Québec,
Canadian Mining Industry Employment and Hiring 2009. www.mrn.gouv.qc.ca/english/publications/mines/
Forecasts 2010. Kanata: Mining Industry Human strategy/mineral_strategy.pdf.
Resources Council, 2010. www.mihr.ca/en/resources/
Employment_HiringForecasts2011_FINAL_ENG1.pdf. National Aboriginal Health Organization (NAHO). Inuit
Tuttarvingat: Economic Development. www.naho.ca/
—. Mining Essentials: A Work Readiness Training Program inuit/health-determinants/economic-development/.
for Aboriginal Peoples. www.aboriginalmining.ca/en/
education/MiningEssentials_Program_Delivery.asp#a2. —. Resource Extraction and Aboriginal Communities
in Northern Canada: Cultural Considerations. Ottawa:
—. Mining Industry Human Resources Guide for NAHO, 2008.
Aboriginal Communities. Mining Industry Human
Resources Council. www.mihr.ca/en/resourcesGeneral/ —. Resource Extraction and Aboriginal Communities
ResourceGuide.pdf. in Northern Canada: Social Considerations. Ottawa:
NAHO, 2008.

National Center for Environmental Economics. 4.2.3. —. Mining and Mineral Technology. www.nrcan.gc.ca/
Examples of State Effluent Fees: Louisiana, California, minerals-metals/technology/3238.
and Wisconsin. yosemite.epa.gov/ee/epa/eed.nsf/
a8aa55f234e6571a852577420067397e/b0c30e95a08204 —. Mining Sector Performance Report 1998–2008.
7585257746000aff3c!OpenDocument. Final Report of the Federal, Provincial and Territorial
Social Licence Task Group. Submitted to the 2010
National Mining Association. Fast Facts About Energy and Mines Ministers’ Conference. September
Minerals. www.nma.org/statistics/fast_facts.asp 2010. www.nrcan.gc.ca/minerals-metals/publications-
(accessed October 2011). reports/3398.
Natural Resources Canada. Aboriginal Participation —. Mining Information Kit for Aboriginal
in Mining: Mining Development. Information Bulletin, Communities. 2006. www.nrcan.gc.ca/minerals-
2005. www.nrcan.gc.ca/sites/www.nrcan.gc.ca.minerals- metals/aboriginal/bulletin/3059.
metals/files/pdf/mms-smm/abor-auto/pdf/dev-exp-eng.pdf.
—. “Raglan Mine–Quebec: An Agreement Designed to
—. About Uranium. www.nrcan.gc.ca/energy/sources/ Harmonize Relations and Foster Opportunities Between
uranium-nuclear/1169. Xstrata Nickel and the Local Aboriginal Communities.”
Aboriginal Engagement in the Mining and Energy
—. Backgrounder: Green Mining Initiative. www.nrcan. Sectors: Case Studies and Lessons Learned.
gc.ca/media-room/news-release/66a/2010-08/2090.
—. Sustainable Development: Report on Plans and
—. Canadian Minerals Yearbook (CMY): 2009. Priorities 2011–2012. www.nrcan.gc.ca/sustainable-
www.nrcan.gc.ca/minerals-metals/business-market/ development/strategy-2011-2012/2664.
canadian-minerals-yearbook/4033.
—. “Taxation of Mineral Income 2012: How Canada
—. Canadian Minerals Yearbook (CMY): 2008. Compares.” Information Bulletin, June 2011.
www.nrcan.gc.ca/minerals-metals/business-market/ www.nrcan.gc.ca/minerals-metals/business-
canadian-minerals-yearbook/2008-review/statistics/3190. market/4048.
—. GEM: Geo-Mapping for Energy and Minerals. —. The Atlas of Canada: Metal Mining. atlas.nrcan.
www.nrcan.gc.ca/earth-sciences/about/current-program/ gc.ca/auth/english/maps/economic/mining/metal_
geomapping/7131. mines/1.
—. Green Mining Initiative to Reduce Mining’s —. The Social Dimension of Sustainable Development
Environmental Footprint. www.nrcan.gc.ca/science/ and the Mining Industry: Historical Background.
story/3573. www.nrcan.gc.ca/minerals-metals/policy/sustainable-
development/social-dimension/3950.
—. Key Mining Facts 2011. May 2010. www.nrcan.
gc.ca/minerals-metals/nmw-smc/4450. Nunavut Arctic College. Trades Access.
www.arcticcollege.ca/en/trades/item/4896-trades-access.
—. “Mineral Exploration and Deposit Appraisal
Expenditures in Canada: Spending Continues Its Nunavut Planning Commission. About the Commission.
Record-Breaking Trend With More Than $4 Billion www.nunavut.ca/en/about-commission.
Expected in 2012.” Information Bulletin, March
2012. www.nrcan.gc.ca/minerals-metals/publications- —. Draft Nunavut Land Use Plan. www.nunavut.ca/en/
reports/4413. draft-plan.

Nunavut Water Board. Legislation. Piette, Jean. Canada: Quebec Passes Regulation on
www.nunavutwaterboard.org/en/legislation. Cap-and-Trade System. March 27, 2012. www.mondaq.
com/canada/x/170068/Environmental+Law/Quebec+Pas
One Project–One Assessment Sub-Group of the ses+Regulation+On+CapandTrade+System.
CCME Environmental Assessment Task Group.
Potential Models for a One Project–One Environmental PricewaterhouseCoopers LLP (PwC). Economic Impact
Assessment Approach. Discussion paper, January 2009. Analysis. Prepared for the Mining Association of British
www.ccme.ca/assets/pdf/consultation_pkg_e.pdf. Columbia. October 2011. www.mining.bc.ca/sites/
default/files/resources/pwcmining-economicimpact-
Ontario Ministry of Energy and Infrastructure and analysis_1.pdf.
Ontario Ministry of Northern Development, Mines and
Forestry. Places to Grow: Proposed Growth Plan for —. Digging Deeper: Canadian Mining Taxation. 2011.
Northern Ontario. 2009. www.placestogrow.ca/images/ www.pwc.com/en_ca/ca/mining/publications/canadian-
pdfs/Northern_Proposed_Growth_Plan.pdf. mining-taxation-2011-04-en.pdf.
Ontario Ministry of Infrastructure and Ontario Ministry Prospectors & Developers Association of Canada. e3
of Northern Development, Mines and Forestry. Places Plus: Principles and Guidance. www.pdac.ca/e3plus/
to Grow: Growth Plan for Northern Ontario 2011. English/pg/pdf/e3plus-pg-full.pdf.
www.placestogrow.ca/images/pdfs/GPNO-final.pdf.
Provincial and Territorial Departments Responsible for
Ontario Ministry of Natural Resources. Far North Act, Local Government. Resiliency and Recovery Project
2010. Backgrounder, October 25, 2010. www.mnr.gov. Committee. Facing the Challenge of Industry Closure:
on.ca/stdprodconsume/groups/lr/@mnr/@farnorth/docu- Managing Transition in Rural Communities. Toronto:
ments/document/stdprod_071241.pdf. ICURR Press, 2005. www.muniscope.ca/_files/file.
php?fileid=fileafobOUeYJw&filename=file_ICURR_
—. Far North Ontario: Community Based Land ReportFeb05_online_Final_.pdf.
Use Planning. www.mnr.gov.on.ca/en/Business/
FarNorth/2ColumnSubPage/275048.html. Pulla, Siomonn. Striking a Balance: Impacts of Major
Natural Resource Projects in the North. Ottawa: The
Ontario Ministry of Northern Development and Conference Board of Canada, 2011.
Mines. Improving Municipal Infrastructure in Kirkland
Lake. News release, Toronto: Government of Ontario, Railway Association of Canada. 2011 Rail Trends.
May 21, 2011. http://news.ontario.ca/mndmf/ Ottawa: Railway Association of Canada, 2010.
en/2011/05/improving-municipal-infrastructure- www.railcan.ca/assets/images/publications/2011_
in-kirkland-lake.html. Trends/2011_RAC_TrendsEng.pdf.
—. Annual Report 2009–2010. www.mndm.gov. Rankin Inlet. Rankin Inlet History. March 17, 2010.
on.ca/en/about-ministry/annual-report/annual- www.rankininlet.net/category/rankin-inlet-history.
report-2009-2010.
Rogers, Sarah. “Work Starts on New Rankin Inlet–
—. Assessment Work Credits. www.mndm.gov.on.ca/ Meliadine Road.” Nunatsiaq Online. March 21, 2012.
en/mines-and-minerals/mining-act/mining-act- www.nunatsiaqonline.ca/stories/article/65674work_
modernization/assessment-work-credits. starts_on_new_rankin_inlet-meliadine_road/.
Palladini, Jacqueline. Estimating Economic Activity in

Canada’s Northern Regions. Ottawa: The Conference
Board of Canada, 2011.

Standing Committee on Aboriginal Affairs and —. Facts and Figures 2010. Ottawa: The Mining
Northern Development. Northerners’ Perspectives for Association of Canada. www.mining.ca/www/media_
Prosperity. 40th Parliament, 3rd Session, December lib/MAC_Documents/Publications/2010/Facts_and_
2010. http://publications.gc.ca/collections/collec- Figures_2010_English.pdf.
tion_2010/parl/XC35-403-1-1-01-eng.pdf.
—. Submission by The Mining Association of Canada
Statistics Canada. Table 282-0002. Labour Force to the Standing Committee on Environment and
Characteristics by Sex and Age Group. CANSIM Sustainable Development. November 17, 2011.
(database). www.statcan.gc.ca/tables-tableaux/sum-som/ www.mining.ca/www/media_lib/Recent_Activities/
l01/cst01/labor05-eng.htm. HofC%20CEAA-eng.pdf.
—. Labour Force Indicators by Age Groups for Both —. Towards Sustainable Mining: Progress Report 2011.
Sexes, 2006 Counts. 2006 Census. www12.statcan.ca/ www.mining.ca/site/tsmprogressreport2011/what-is-
census-recensement/2006/dp-pd/hlt/97-559/T602-eng. tsm.html.
cfm?SR=1.
—. Towards Sustainable Mining: Progress Report 2010.
Sisco, Ashley, Margaret Caron-Vuotari, Carole extras.newswire.ca/smr/PDF/MAC_TSM_Progress_
Stonebridge, Greg Sutherland, and Gilles Rhéaume. Report.pdf.
Lessons Learned: Achieving Positive Educational
Outcomes in Northern Communities. Ottawa: The Two Ducks Resources. Comparative Review
Conference Board of Canada, 2012. of the Rate of Royalty in the Canada Mining
Regulation, as Relates to National and International
The Conference Board of Canada. Canadian Competitiveness. Ministry of Indian Affairs and
Outlook: Long-Term Economic Forecast 2012. Northern Development, 2008. www.mining.ca/www/
Ottawa: CBoC, 2012. media_lib/MAC_Documents/Diamond_Affairs/2008/
CMRRoyaltyComparativeReviewFinalReport.pdf.
—. Canadian Outlook: Long-Term Economic Forecast
2011. Ottawa: CBoC, 2011. U.S. Department of the Interior and U.S. Geological
Survey. Mineral Commodity Summaries 2011. Reston,
—. Territorial Outlook: Summer 2012—Economic Virginia: U.S. Geological Survey, 2011. http://minerals.
Forecast. Ottawa: CBoC, 2012. usgs.gov/minerals/pubs/mcs/2011/mcs2011.pdf.
—. From the Beginning. September 9, 2010. U.S. Geological Survey (USGS). “Africa.” 2009
www.centreforthenorth.ca/blogs/herethenorth/ Minerals Yearbook. U.S. Geological Survey,
fromthebeginning. September 2011.
—. Kids These Days. January 4, 2011. —. “Asia and the Pacific.” 2009 Minerals Yearbook.
www.centreforthenorth.ca/blogs/herethenorth/ U.S. Geological Survey, September 2011.
kidsthesedays.
—. “Australia.” 2009 Minerals Yearbook. U.S.
The Mining Association of Canada. Economic Impact. Geological Survey, April 2011.
www.mining.ca/site/index.php/en/mining-in-canada/
economic-impact.html. —. “China.” 2009 Minerals Yearbook. U.S. Geological
Survey, November 2010.
—. Facts and Figures of the Canadian Mining
Industry 2011. www.mining.ca/www/media_lib/MAC_ —. “Canada.” 2010 Minerals Yearbook. U.S. Geological
Documents/F&F2011-English.pdf. Survey, November 2011.

—. “Countries of the Baltic Region, Caucasus Region, Women in Mining Canada. Ramp-Up: A Study on the
Central Asia Region, and Eurasia Region.” 2008 Status of Women in Canada’s Mining and Exploration
Minerals Yearbook. U.S. Geological Survey, Sector. 2010. www.mihr.ca/en/publications/resources/
December 2010. Ramp-UPFinal2010.pdf.
—. “Europe and Central Eurasia.” 2008 Minerals World News. “NWT Aboriginals Oppose Feds’ Plan
Yearbook. U.S. Geological Survey, December 2010. to Streamline Approvals for Resource Development.”
March 27, 2012. http://article.wn.com/view/2012/03/27/
—. “Europe and Central Eurasia.” 2010 Minerals NWT_aboriginals_oppose_feds_plan_to_streamline_
Yearbook. U.S. Geological Survey, September 2012. approvals_for/.
—. “Latin America and Canada.” 2009 Minerals Xstrata. Xstrata Zinc’s Successful Mine Closure
Yearbook. U.S. Geological Survey, September 2011. After 147 Years of Operation. www.xstrata.com/
sustainability/casestudies/xstrata-zincs-successful-
Vale Inco Canada. “Negotiating Agreements: Indigenous mine-closure-after-147-years-of-operation/.
and Company Experiences: Presentation of the Voisey’s
Bay Case Study from Canada.” International Seminar on Yukon College. Centre for Northern Innovation in
Natural Resource Companies, Indigenous Peoples and Mining (CNIM) Draft Phase One Feasibility Study.
Human Rights: Setting a Framework for Consultation, February 3, 2012. www.yukoncollege.yk.ca/downloads/
Benefit-Sharing and Dispute Resolution. Held at CNIM_Draft_Phase_One_Feasibility_Study_Feb_22.pdf.
Moscow, December 3–4, 2008. http://www2.ohchr.org/
english/issues/indigenous/docs/workshops/Vale_Inco_ Yukon Environmental and Socio-Economic Assessment
Canada_Voiseys_Bay_case_Moscow_Workshop.pdf. Board. Frequently Asked Questions. www.yesab.ca/
about_us/faqs.html.
Wilson, Sarah. “Regulatory Headaches Continue for
Northern Miners.” News North, November 14, 2011.

Centre for the North
Purpose • Engage First Nations, Inuit, and Métis leaders

The main purpose of the Centre for the North is to work and communities to ensure that their voices are
with Aboriginal leaders, businesses, governments, incorporated into the dialogue and analysis on
communities, and educational institutions to achieve a the full range of issues.
shared vision of sustainable prosperity in the North.
Our Goal . . .
Key Objectives . . . is, through research and dialogue, to provide
• Examine the full range of challenges and policy-makers and others with new insights
opportunities related to sustainable prosperity and that strengthen their foundation for informed
then develop policies and strategies that take into decision-making.
account the interrelationships among the factors.
E-MAIL contactcfn@conferenceboard.ca
Insights you can count on [ centreforthenorth.ca ]

Publication 13-201
E-copy: Complimentary
255 Smyth Road, Ottawa ON K1H 8M7 Canada

Tel.613-526-3280 • Fax 613-526-4857 • Inquiries 1-866-711-2262
The Conference Board, Inc. 845 Third Avenue, New York NY 10022-6679 USA Tel. 212-759-0900 • Fax 212-980-7014 • www.conference-board.org
The Conference Board Europe Chaussée de La Hulpe 130, Box 11, B-1000 Brussels, Belgium Tel. +32 2 675 54 05 • Fax +32 2 675 03 95
The Conference Board Asia-Pacific 2802 Admiralty Centre, Tower 1, 18 Harcourt Road, Admiralty Hong Kong SAR Tel. +852 2511 1630 • Fax +852 2869 1403
conferenceboard.ca

Future of Mining in Canada's North

Uploaded by

Copyright:

Available Formats

Future of Mining in Canada's North

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Future of Mining in Canada's North

Uploaded by

Copyright:

Available Formats

Report January 2013

The Future of Mining

Economic performance and trends

About The Conference Preface

©2013 The Conference Board of Canada*

Forecasts and research often involve numerous assumptions and data

Chapter 2—Canada’s Northern Mining Potential to the Year 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Chapter 3—Business Factors Related to Mining Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Chapter 4—Impacts and Benefits of Mining for Northern Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Chapter 5—Addressing Environmental Stewardship and the Impacts of Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Chapter 6—Creating a Sustainable Future: What Happens After a Mine Closes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Chapter 7—Conclusion and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

About The Centre for the North

and security and sovereignty. The Centre’s research agenda

Aboriginal Affairs and Northern Development Canada Government of Saskatchewan

The Future of Mining

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

The different levels of government—Aboriginal,

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

There is great potential for mining development in the

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Canada’s Northern Mining

 The economic forecast predicts the doubling

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Northern primary mineral Employment of Mineral exploration

*Northerners are defined as those residing in Canada’s Northern economic regions.

Find this report and other Conference Board research at www.e-library.ca

Non-metallic minerals Metals Non-metallic minerals Metals

47 To better measure the local impact that mining activity can

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

Non-metallic minerals Metals Non-metallic minerals Metals

Find this report and other Conference Board research at www.e-library.ca

Non-metallic minerals Metals Non-metallic minerals Metals

mining output. They include the Red Chris copper

48 BC Hydro, Northwest Transmission Line Project.

Find this report and other Conference Board research at www.e-library.ca

Non-metallic minerals Metals Non-metallic minerals Metals

Find this report and other Conference Board research at www.e-library.ca

Economic Impact of Future Mining Output

Sources: Statistics Canada; The Conference Board of Canada.

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

53 Cook, The Odds and Opportunities in the Junior Miners.

Find this report and other Conference Board research at www.e-library.ca

Business Factors Related

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

this scenario, Manitoba, Ontario, British Columbia,

4 Natural Resources Canada, “Taxation of Mineral Income 2012.” 5 Ibid.

Find this report and other Conference Board research at www.e-library.ca

Find this report and other Conference Board research at www.e-library.ca

The economic forecast predicts the doubling