Mining continues to play a pivotal role in Nunavut's economy and that isn't about to change anytime soon, according to Annie Cyr-Parent, director of minerals and petroleum resources for Nunavut鈥檚 Department of Economic Development and Transportation.
Cyr-Parent said a mixed economy is characterized by relatively large mining and public sectors, while other industries hold great potential for growth, such as fisheries, the arts and tourism.
She said economic development in the territory faces many challenges due to the lack of infrastructure, the high cost of reaching suppliers and markets, and a mismatch of skills in the labour market, resulting in high business costs, low employment rates and economic distortions.
鈥�The relative size of the private sector in the economy has expanded rapidly over the past 15 years, led by the mining industry,鈥� said Cyr-Parent. 鈥淪till, limited local human resources limits the growth of our economy.
鈥�There is a need to support our young and growing population in Nunavut by upgrading their abilities through education, training and skills development. Further, community-based business development that caters to local needs can reduce dependency on government assistance and foster social inclusion.鈥�
Nunavut is recognized as one of Canada鈥檚 most attractive jurisdictions for mineral exploration and investment. The territory produces significant mineral wealth, retaining its sixth place among the provinces and territories with more than $2.3 billion in gross production in 2022. Cyr-Parent said gold鈥檚 share nears 60 per cent, while iron ore stands around 40 per cent.
The development of Nunavut鈥檚 mineral resources has steadily progressed over the past 15 years and shows great potential for continued growth.
She said multiple projects in this sector have resulted in significant benefits to Nunavummiut, such as training and employment opportunities.
鈥�In 2009, the mineral sector represented two per cent of the Nunavut economy. Twelve years later, in 2021, it stood at 41 per cent. In the next two years, mining is expected to surpass the 50 per cent mark. This rapid expansion results in Nunavut leading Canada in economic growth since 2009.
鈥�There are currently three fully operational mines. The two in the Kivalliq region, Meadowbank and Meliadine, produce gold for Agnico Eagle Mines Ltd. In the Qikiqtaaluk region, Baffinland Iron Mines Corp. owns the Mary River mine, which extracts high-quality iron ore.鈥�
Cyr-Parent said in the Kitikmeot region, B2Gold Corp. is poised to turn its Goose project, located within the Back River gold district, into a mine.
She said gold production at the site is anticipated to commence in the second quarter of 2025.
鈥�In the same region, the Hope Bay mine belonging to Agnico Eagle Mines Ltd. has stopped extracting gold to extensively explore its recently acquired site. This will allow for the design of an optimal operation plan.
鈥�Its production is expected to resume once this is completed. The future contribution of these two mines will offset falling production elsewhere.
鈥�In 2023, Baffinland announced that it would seek financing to build a railway to Steensby Inlet. If successful, Baffinland鈥檚 operations could significantly change.
鈥�The high grade of the ore produced at the Mary River mine allows for direct shipping without further treatment and also commands a premium on the market. Since it requires less transformation, it fits extremely well in steel production processes that increasingly aim at lowering the emission of carbon dioxide.鈥�
