Good afternoon, ladies and gentlemen. Bonjour, mesdames et messieurs.
Thank you very much, Mr. Chairman and committee, for the invitation to appear before the committee.
Today I want to talk to you about the mining and exploration industry and the important role it can play in the economic development of Nunavut.
Nunavut has the right kind of geology to host major mineral deposits. However, it's a vast, remote territory with logistical and weather conditions that challenge even the most determined explorationist. As a result, Nunavut remains under-explored for minerals when compared with more accessible regions of Canada. Consequently, Nunavut offers great potential to make large-scale, elephant-size discoveries starting with grassroots exploration.
Three major mines, namely Nanisivik, Lupin, and Polaris, opened in what is now Nunavut between 1976 and 1982. These operations generated significant employment, training, and other economic benefits for local communities and the territory as a whole. All three of these mines are now closed.
The Meadowbank gold mine near Baker Lake, scheduled to commence production in the first quarter of 2010, is the first major mine to open in Nunavut since 1982. Already, the Baker Lake, Rankin Inlet, and the Kivalliq region in general are seeing significant benefits from this development.
In my opinion, mining has the greatest potential to produce significant economic development opportunities for the people of Nunavut in the near term. History tells us there are few other economic development options for Nunavut that could generate the economic and social benefits that responsible mineral development can bring.
Since 2005 my company, Peregrine, a junior diamond explorer, has managed a total of $30 million in exploration expenditures in Nunavut because of its great geologic potential. These expenditures have resulted in the discovery of two promising diamond districts: Chidliak, which is located about 120 kilometres northeast of here, and Nanuq, 250 kilometres north of Rankin Inlet. At Chidliak my company spent $9.2 million this year and in Nanuq, $1.5 million. A significant portion of that went to local goods and services and local employees.
Just for reference, BHP Billiton, the world's largest mining company and the operator of the Ekati mine in the Northwest Territories, is our partner at Chidliak.
While mineral development in Nunavut presents many challenges, there are four that I want to focus on this afternoon: land use planning, regulatory capacity, worker training, and geoscience funding.
Draft legislation for land use planning and impact assessment for Nunavut is expected to be introduced in the House of Commons soon. It's essential that this legislation recognize the irreplaceable role that mining can play in the responsible development of Nunavut's economy. The legislation should promote efficient and timely advancement of projects at all phases of the exploration and mining cycle. Industry should be recognized as a valuable partner in drafting and finalizing land use plans that will be developed under the legislation.
Very importantly, it's critical to include industry's input and consider potential mineral resources before establishing zones or areas where mineral exploration and development will be limited or even prohibited. If that doesn't happen, if you don't get industry's input, then important opportunities for long-term sustainable development in Nunavut could be lost.
If the regulatory regime in Nunavut is to fulfill its intended purposes, it is essential to ensure that qualified individuals are appointed to the many board positions that need to be filled and that the appointees receive appropriate training and support. There has been a lot of progress in the last 10 years, but I think we have a little way to go yet.
Government should consider the establishment of an independent body to support northern boards and commissions. This recommendation is spelled out clearly in the joint submission that the exploration and mining industry made to the northern regulatory improvement initiative in 2008. If this is done it will not only help Nunavut, it will also help the NWT, where the growing pains under the Mackenzie Valley Resource Management Act are widely recognized.
Exploration and mining industry success in Nunavut will create a large number of both skilled and entry-level positions in the territory. As an example, even though our two projects are early-stage exploration projects, this year we employed 18 people from Pangnirtung and Iqaluit at Chidliak and a person from Repulse and a person from Rankin on our smaller Nanuq project.
Great effort should be put toward establishing training programs in the communities, ideally in collaboration with industry. That would prepare the residents of Nunavut for careers in the mining industry. There are some initiatives in this area right now, but I think it can be improved, and you heard a fair amount about that this morning. Also very critical, supporting and improving the K-to-12 and post-secondary education facilities in the communities can pay great dividends.
Finally, it's important for the exploration industry to have a good foundation of geologic information for the areas they are exploring. So it's important that the various geoscience programs active in the north continue to get funded to provide this baseline information for industry.
To summarize, mineral exploration and mining offer the possibility of significant sustainable development and capacity building for the people of Nunavut. This is clearly illustrated by the current development of the Meadowbank gold mine near Baker Lake and of course by the history of Polaris, Nanisivik, and Lupin. I urge you to keep an eye on Meadowbank and monitor for yourselves the beneficial impacts that Nunavut's latest mine will have on the Kivalliq region and the territory as a whole. Establishing a mine is a rare occurrence. It's very difficult. Exploration is expensive and a high-risk investment.
I urge the members of the committee to do everything possible to encourage and facilitate responsible mineral exploration and development throughout the north and in particular in Nunavut, where meaningful opportunities for employment are so clearly needed.
Thank you very much.
Thank you very much.