Thank you, Mr. Chair.
My name is Sean Boyd. I'm the chair of the board of Agnico Eagle Mines Limited.
On behalf of Agnico Eagle, it's my pleasure to speak to the standing committee today on a topic that we all know is of great importance to Canada. It's one where Agnico Eagle, given our long history and expertise in mining, feels that we can be of service to the Government of Canada.
I'll focus my remarks today on three areas where we can provide some guidance to the committee.
The first is on the defence industrial strategy, particularly in the Arctic. It's nice to see a comprehensive strategy, but we feel that the emphasis, when we talk about sovereignty, needs to start with socio-economic benefits and support in communities. Strong communities are strong sovereignty.
We have some thoughts on incentives to promote defence mineral production in Canada, not only from our long experience in mining in Canada, but also from our newly created, wholly owned subsidiary, Avenir Minerals, which has a focus on critical and strategic minerals and metals in Canada. I will also talk about the potential alignment between Canadian mining companies, particularly those operating in the north, and the federal government, with opportunities for collaboration and partnership. We have specific examples on this.
It's important to have a strategy, but it's also important to ensure that we get effective and efficient execution of that strategy. That's where mining companies come in with experience and skills, particularly in the north, working with the government to achieve the objectives.
We have to remember that mining is a tough business. We're often governed by nature and economics. We can't put deposits where we'd like them to be. There's a lot of work to do, but we still see tremendous opportunity.
Agnico Eagle is Canada's largest mining company. We've grown from a very small company to be the second-largest gold producer in the world. We've done it with 85% of our business based in Canada, and we have 14,000 employees. We have seven mines in Ontario, Quebec and Nunavut. We produce more than half of Canada's gold, which was Canada's second-largest export in 2025.
We're one of the largest corporate taxpayers in Canada, at $2.7 billion. That number will be higher in 2026. We're also the largest payer in the country to indigenous groups under benefit agreements, at over $200 million. We expect that number to rise significantly in 2026.
We're deeply committed to Canada's north. We have two mines in Nunavut, including the Meadowbank complex and Meliadine in the Kivalliq region. The Hope Bay project is on our northern coast. Since 2007, which is almost 20 years ago, we've invested over $10 billion in Nunavut. We're currently roughly 22% of the GDP of Nunavut. We have 400 Inuit employees among 4,000 employees in Nunavut. That's a significant contributor to their economies.
In 2021, following the Government of Canada's decision to block its sale to a Chinese firm, Agnico Eagle purchased the Hope Bay mine on Canada's northern coast. Since that time, we've invested over $1 billion at the site. We now have a plan to redevelop and reopen this mine with the support of the Kitikmeot Inuit Association, along with an investment by Agnico Eagle of over $2 billion. We plan to announce the go-ahead on this project in the spring.
Hope Bay is an interesting project, given the time and moment we're in as a country. Although it's not on the major projects list, the timing of moving it forward and the significant investment in the Northwest Passage really send a strong signal to our allies and adversaries about Canada's assertion of sovereignty in the Arctic. It drives national economic growth. It strengthens and sustains northern communities. It develops significant and important infrastructure for the north. It creates meaningful employment and high-paying jobs, and it advances indigenous economic reconciliation. It's an important project that forms the basis of continued investment by Agnico in Canada's north, in partnership with communities and in partnership with the government.
As we all know, Russia has spent considerably more on infrastructure in the Arctic than any other Arctic nation. It has 17 deepwater ports, while Canada has none. Canada is a frontline NATO country, sharing the largest maritime border in the world with Russia, meaning we have a sizable commitment for collective security. Really, there's no time to waste on this.
The Arctic region presents Canada with an opportunity to contribute to national and collective security in a way that is uniquely Canadian and can suit our national identity, and it provides an opportunity to the federal government to demonstrate not only to the world but to Canadians the importance of the north in our future. A great start is Canada's defence industrial strategy, which places a significant emphasis on Canada's north and the Arctic and on the need to provide sovereignty in this vital region, but as we say, it all depends on effective and efficient execution.
Building mines, when you do it properly, is really about building community. When it's done in the north, it's also about building the nation. To ensure its success and wide support, Canada's approach to Arctic defence must be part of a broader socio-economic strategy that understands sovereignty as being fundamentally about people, communities, the strength of communities and the opportunities that exist in communities.
One of the keys to ensuring strong communities is education. With one-third of its 40,000 people under the age of 15, Nunavut is home to Canada's youngest population. At the same time, Nunavut has the lowest high school graduation rates, with a completion rate of only about 50% resulting in only about 300 high school graduates per year across the entire territory. Obviously, when you think about investments in mining, along with investments in defence and community infrastructure, we're going to need a lot more highly skilled workers to allow us to efficiently execute them.
I'll put this into context. As I mentioned—