Thank you.
Canadian Zinc owns the Prairie Creek lead-zinc-silver mine in the Northwest Territories in the Mackenzie Mountains. This is a unique situation, a unique project, in that the mine was built 30 years ago. It's 30 years old, but it's brand-new. It has never operated. Like many other projects, that's a colourful story, but it's not a story for today. Let me just say today that Prairie Creek is a major Canadian resource.
The mine is not in production, and why not? I regret to say this is largely because of the current regulatory and permitting regime that exists in the Northwest Territories today.
When the mine was built in 1980-82, it was fully permitted, but unfortunately those permits lapsed, and when the new Mackenzie Valley Resource Management Act came in in 2000, we had to reapply for permits under the new process. Since 2001 we have successfully obtained seven permits for exploration and development, and various aspects of that project have been the subject of five different environmental assessments, all of which recommended that the project, or the aspects of the project, be allowed to go ahead. We're not yet there, but we are getting closer.
In June of last year we applied for the operating permits to put the mine into production, but we still expect a lengthy process. In October 2008 we signed important MOUs with aboriginal first nations in the community. These represented agreements to cooperate for mutual benefit.
Members of the committee will be well aware that in June of this year, 2009, both houses of Parliament unanimously passed an act to amend the National Parks Act to expand Nahanni National Park. The MP for Western Arctic, Mr. Bevington, spoke on that resolution in the House.
The new act expanded Nahanni National Park. It completely surrounds the Prairie Creek mine, but the mine itself has been excluded from the park and is not part of the park. And most importantly from our perspective, the National Parks Act was amended to provide that the minister could grant leases or licences to provide access through the park to the Prairie Creek mine area.
For many years, that unresolved land use policy issue had delayed the undertaking of the Prairie Creek project, but I'm glad to say that the resolution of the policy issues has now eliminated that problem. So Canadian Zinc, and indeed the entire Canadian mining industry, supports a balanced approach to resource development and conservation, which allows both for resource development and for preservation and protection of the environment.
Our mine will provide tremendous economic stimulus to the region of the Northwest Territories. It's a unique opportunity. Indeed, it's probably the only opportunity in the Dehcho region to strengthen and enhance the social and economic well-being of the surrounding communities. The mine will employ about 220 people. It will run for about 20 years. We're targeting a northern employment of about 40% and then a first nation employment of about 25%, minimum.
Mining has always been the economic driver for the economy of the Northwest Territories. We would suggest to you that mining has created and paid for most of the major infrastructure in the Northwest Territories: roads, rail, hydro, and indeed the very city of Yellowknife itself. We would ask, where would the Northwest Territories be without mining?
But mining today in the Northwest Territories is threatened. Mines are finite. They run out and they do not last forever. The diamond mines, which are making a huge contribution to the current economy of the Northwest Territories, are probably past their peak years.
Mineral exploration is the lifeblood of the industry. Unfortunately, throughout Canada in 2009, mineral exploration is way down. According to the figures published by Natural Resources Canada, there is a 44% decline, but in the Northwest Territories the reduction is a staggering 81% down, year over year, from $148 million spent in 2008 to only an estimated $29 million this year.
In the mining industry we operate in the global world. Investment capital is very mobile. It will go where it gets the best reward at the least risk, but risk includes not just project or price risk, but also environmental and social risk. Canada now needs to compete for the investment dollars, and there can be no certainty that there will be a future in the Canadian mining industry that will attract global investment capital. So to win the battle or the competition for investment dollars, to make Canada and the Northwest Territories an attractive place for investment in mining, we need to eliminate barriers to entry.
We cannot change the geology. We cannot put minerals in the ground, but we can reduce the barriers to entry, and two of those in the Northwest Territories are land access and permitting.
Unfortunately, in recent years the NWT has gotten a reputation as a difficult place to gain land access for exploration or to get permits for mining or to get them within a reasonable timeframe. There is a significant challenge to permitting in the Northwest Territories. Our fear is that if there's no improvement, mining capital will go elsewhere, because the timelines are too long, there's no certainty. And nobody will get the benefit of the resources that are undoubtedly here.
In this presentation what we have sought to demonstrate is that development of the Prairie Creek mine will offer many benefits to the aboriginal communities, to the Northwest Territories, and to Canada, but the successful development of our mine needs the active support of government and of political leaders. Support is needed in improving the regulatory permitting regime; in upgrading infrastructure, education and training, and social programs; and in assisting the aboriginal communities to avail themselves of the many business opportunities.
We would suggest that the Northwest Territories needs a northern development vision, a northern development strategy, and a broad infrastructure plan including both transport and power. And indeed, land-access arrangements must be quickly agreed with first nations. The mining industry will play its part, but government must play the leading role.
Finally, gentlemen, perhaps most importantly, development of Canadian Zinc's Prairie Creek mine needs the active participation of all levels of government in providing political support and encouragement and in delivering a very simple message, a message that needs to be heard, and thankfully doesn't cost any money; it's just a message. That message is that we strongly support northern economic development and we support the development of the Prairie Creek mine. We would ask the standing committee to help ensure that message is heard.
Thank you.