N.W.T. Mining outlook encouraging for 1987

Mining in the NWT should continue to chart a steady course through 1987, says David Nutter, general manager of the Northwest Territories Chamber of Commerce. And, he says, gold will largely be responsible for the stability.

“Gold is just about the only mineral attracting any attention in the country these days,” Mr Nutter says, adding he believes that the lion’s share of the $40 million or so he expects will be spent on exploration in the N.W.T. in 1987 (about the same as in 1986) will be spent on gold.

Five of the eight mines — Lupin, Con, Tom, Giant and Salamita — now operating in the Northwest Territories are gold mines, while the other three — Polaris, Nanisivik and Pine Point — are lead-zinc.

The future of Pine Point, however, is a worry, with mine manager Robert Armstrong saying in early December that a tentative mid-1987 shutdown date is still planned.

“There are no changes to our operation or what has been planned,” he said, adding the operation might be extended but that would depend on the quality of ore found during a current exploration program, and on lead and zinc prices.

The mine, which ships its product south by a combination of rail and truck, has suffered from high transportation and operating costs, partly brought on by having to pump lots of water into its operation.

Also a concern is the continuing closure of the Canada Tungsten Mining Corp.’s mine in Tungsten. The mine shut down after 120 United Steelworkers of America went on strike, but company officials say the world price of tungsten (which has fallen from a world market price of $150(US) per short ton five years ago to $45 in August) must rise before the company, which has faced inexpensive competition from China, will resume operation.

But Mr Nutter thinks the mining community will be heartened by the unveiling Dec 5 in Whitehorse by Northern Affairs Minister William McKnight of the long- awaited Northern Mineral Policy. “We’re very pleased,” he says. “It’s a positive document, supportive of mining and that’s what we’re after.”

Some in the mining community had wondered about the level of government support for their industry, he says. “This document will satisfy their concerns.” But more can be done to boost mining in the N.W.T., he adds, including the resolution of native land claims, which would “go a long way towards improving the investment climate” for those uncertain of what the future holds for the north.

Also of benefit would be opening up the south Mackenzie area with more roads, and building more airstrips in remote areas, allowing those involved in the industry to use larger aircraft than float planes.

Mr Nutter says the industry would also like to see the federal and territorial governments better co-ordinate mining policy to reduce the cost of dealing with different layers of government. He says mining is particularly important to the economic well-being of the N.W.T. and its 50,000-plus residents. “Mining is the N.W.T. economy if you want to exclude government. It’s the major wealth-producing economy.”

Chamber of Mines figures show that in 1985 the Northwest Territories ranked fifth in Canadian metallic mineral production at $578 million, accounting for 6.8% of the country’s metallic mineral production and employing 2,400.

That same year, the N.W.T. produced all of Canada’s tungsten, 29.5% of Canadian lead, 26% of the country’s zinc, 15% of the gold and 3% of the silver.

Obviously it’s a major source of revenue for the N.W.T., said Energy, Mines and Resources Minister Thomas Butters. He said the territorial government wants to see the mining industry prosper, pointing to a reduction in a fuel oil tax that helped mining firms, but meant loss of revenue for the government.

Mr Butters said he was pleased by an apparent greater degree of co-operation between native groups and the mining community. The co-operation can only benefit mining, he said.

Mr Stalker is a freelance writer in Inuvik, N.W. T.