Mining feeds growth in Nunavut: Conference Board of Canada

With minerals in high demand in global markets, the mining sector is bolstering economic growth in Canada’s three northern territories, according to the Conference Board of Canada’s summer 2011 edition of “Territorial Outlook.”

Following growth of 14.8 per cent in 2010, “Nunavut will post another huge gain in gross domestic product of 15.7 per cent this year,” the board’s outlook says.

Rising production at the Meadowbank gold mine, the development of the Hope Bay gold mine and record levels of mineral exploration spending will drive economic growth in the territory.

The public sector will continue to play a major role in Nunavut’s economy, but it will account for a smaller share of overall territorial output over the next 10 years, it says.

“Both Yukon and Nunavut are entering a period of sustained growth in their mining industries. New mines opened in both territories last year and more are scheduled to start up over the next decade,” said Marie-Christine Bernard, the board’s associate director in a Sept. 8 news release. “In the Northwest Territories, however, the diamond extraction industry has reached maturity and production is expected to wane over the next four years, limiting economic growth.”

“The economies of Canada’s territories are prone to sharp rise-and-falls as mining projects move through the assessment, construction, production, and closure phases,” said Bernard. “All three territories face the cyclical nature of growth based on resources.”

This forecast is produced as part of the Conference Board‘s Centre for the North, which works with leaders, businesses, governments, communities, educational institutions, and other organizations to provide insights into how prosperity can be achieved in the North and to establish and implement strategies, policies and practices for the region.