Thank you, Chair and members.
My name is Margaret Buist. I am the vice-president of policy, communications and northern projects at the Canadian Northern Economic Development Agency, or CanNor. I will be providing my opening remarks in both English and French.
Like other regional development agencies, CanNor is responsible for promoting economic development within a distinct region of this country. In our case, the region is the three territories.
Our fundamental responsibility is to support the conditions for a sustainable, diversified and innovative economy in collaboration with northerners and indigenous peoples, businesses, organizations, other federal departments and other levels of government.
The natural resources sector remains a cornerstone of the northern economy, primarily driven by the mining industry, which is the largest private sector contributor to the territories' economies, accounting for approximately 23% of the GDP in 2020 and likely to reach over 28% by 2024.
Much of Canada's mineral potential lies in the territories, including critical minerals that are essential to Canada's economic security and its transition to a low-carbon economy.
While the region north of 60 presents 40% of Canada's land mass, more than 75% of the region's known mineral deposits remain undeveloped due to a significant infrastructure deficit and high operational costs, amongst other factors.
The gross domestic product of all the territories is expected to grow over the next few years. This growth will be largely driven by the mining sector, particularly in Yukon and Nunavut. However, the Northwest Territories is facing headwinds due to lower mineral exploration investment activity and the planned closure of diamond mines.
CanNor is guided by its pan-territorial growth strategy, which is aligned with the Government of Canada's Arctic and northern policy framework. Much of the agency's funding is centred on foundational investments intended to attract economic development, including in the natural resources sectors. CanNor has invested over $38 million for 72 projects since 2015 in energy, forestry, minerals and geoscience sectors.
For example, CanNor invested $1.26 million in the Nechalacho project in the Northwest Territories to fund innovative ore-sorting technology that makes the process more environmentally friendly. This is the first rare earth mine in production in Canada and one of the first to have an indigenous company responsible for mining on its traditional territory.
CanNor also invests in preconstruction readiness of foundational infrastructure projects that, when built, will improve the competitive position of resource development projects. For example, there's $1.28 million to advance planning for the road that will connect the Slave Geological Province in the Northwest Territories to the Kitikmeot Inuit region of Nunavut. There's more than $875,000 toward an all-season Mackenzie Valley Highway. There's $1.6 million to support the Kivalliq hydro-fibre link between Nunavut and Manitoba. There's also $480,000 to support the planning of the proposed Taltson hydroelectricity expansion project.
The renewable energy sector is expanding in the territories to reduce their dependence on diesel. Over the past three years, CanNor has invested more than $16 million in energy projects. I'll give you a few examples.
There's CanNor's $4.6-million investment in the Old Crow solar project to support the Vuntut Gwitchin in equipping their community members with the knowledge and experience to manage operations, and $1.2 million to the Qulliq Energy Corporation in Nunavut to study geothermal potential.
Other resource sectors are smaller in the north, although they are important for economic diversification. For instance, we're helping a small indigenous women-led business called Yukon Timber, a local Whitehorse firewood supplier, expand its services.
CanNor will continue to work with territorial governments, indigenous partners and industry to advance resource development projects in the north that support sustainable economic development.
I'm happy to address any questions you may have.