Mining investment shrinks in Nunavut: NRCan

This graph shows Northern Canadian mineral exploration in all three territories for the month of January. (NRCAN IMAGE)

Mining companies spent less on exploration in Nunavut in 2014 than the previous year, according to new estimates compiled by Natural Resources Canada.

The federal department looked at mineral exploration and deposit appraisal expenditures in all three territories last year, noting an increase in spending in only one of them — the Northwest Territories.

In Nunavut, exploration companies spent about $148 million last year, a decrease of 43 per cent — or $110 million — from 2013.

In 2014, the majority of the investment in Nunavut targeted precious metals, while the majority of spending in the NWT was on diamonds.

NRCan did not look at spending intentions in 2015, but suggested it could continue to drop across Canada’s North.

“These continue to be challenging times for funding exploration and mining projects, and NRCan is projecting even lower spending in Canada than last year,” said Brooke Clements, president of the NWT and Nunavut Chamber of Mines, in a Jan. 21 release.

Clements noted that Nunavut still added a new iron mine to its economy in 2014, as Baffinland Iron Mines Corp. began mining ore at its Mary River site southwest of Pond Inlet.

“Both [NWT and Nunavut] have additional advanced stage exploration and development projects, however we continue to face investment challenges along with much of the rest of the world,” Clements said.

“The Chamber of Mines will continue to encourage federal, territorial and Aboriginal governments to take steps to attract investment to this very important sector for the northern economy.”

The North is not alone; across the country, total expenditure estimates for 2014 dropped about 10 per cent from the previous year, NRCan said.

As a share of projected Canadian investment, Nunavut remains in fifth place.