Infrastructure to Sustain Canada s North

Transcription

1 Infrastructure to Sustain Canada s North AGENDA 11 th CPAR, Whitehorse, Yukon Rick Meyers The Mining Association of Canada MAC & Canada s Mining Industry Towards Sustainable Mining Canada s North Mining s Contribution Infrastructure North Current Status (Access & Energy) Rationale for Infrastructure Investment to help Sustain the North 11th CPAR - Whitehorse, Yukon 1

2 About MAC The national voice of the mining industry in Canada: Advocacy - to advance the business of mining Towards Sustainable Mining: About performance, stewardship and social license 39 Corporate members in iron ore, gold, diamonds, oil sands, metcoal, base metals, uranium 50 Associate members in engineering, environment, finance Advocacy work supported by member committees: environment, science, economics, public affairs, Aboriginal relations 11th CPAR - Whitehorse, Yukon 2

3 Canada s Mining Industry Contributions Domestic Contribution 220 mines, 33 smelters and refineries 380K employees, $20B annual capital investment $71B taxes over the past decade Largest private sector employer of Aboriginal Canadians Global Competitor Attracted 18% of world exploration spending in 2011 TSX/TSX-V: 1,600 mining companies listed, 47% projects outside Canada Minerals account for 23% of Canada s total goods exports Primary source of minerals for Clean Technology Top five world producer in uranium, potash, nickel, platinum, zinc 11th CPAR - Whitehorse, Yukon 3 aluminum, diamonds, met coal

4 Canada s Mining Industry Coast to Coast to Coast 11th CPAR - Whitehorse, Yukon 4

5 Northern Canada s growth rooted in Resource Development Infrastructure Contributions to communities and infrastructure Dawson City, Yukon; Yellowknife, NWT; Rankin Inlet, Nunavut Roads, ports, hydro facilities, rail, microwave communications Community health and sports facilities Environmental and Social Legacies Pressure on regulators pressure on industry to improve performance Importance of improving performance 5

6 Towards Sustainable Mining: Our Commitment Established in 2004, TSM is MAC s commitment to responsible mining that every member agrees to implement. TSM s primary objective is to enable mining companies to meet society s minerals products needs in the most socially, environmentally and economically responsible way. The program s core strengths are: Accountability Mandatory for all members to report at the facility level Transparency Annual reporting against 23 indicators with independent verification Credibility Through ongoing consultation with our Community of Interest Advisory panel to improve industry performance and help shape TSM for continual advancement 6 11th CPAR - Whitehorse, Yukon

7 TSM Program Architecture Guidance and Expectations TSM Guiding Principles Policy Frameworks TSM Performance Protocols Communities and People Environmental Stewardship Energy Efficiency Aboriginal and Community Outreach Tailings Management Energy Use and GHG Emissions Management Crisis Management Planning Safety and Health Biodiversity Conservation Management 23 Performance Indicators in 6 protocols Public Reporting and Verification Assessment Protocols Good Practice Guidance Performance Measurement and Reporting System External Verification 11th CPAR - Whitehorse, Yukon 7

8 Towards Sustainable Mining (TSM) Governance MAC Board of Directors TSM Governance Team Community of Interest Advisory Panel Tailings Working Group TSM Initiative Leaders Public Affairs Committee Biodiversity Task Force Other MAC Committees/ Taskforces/Working Groups Energy Task Force COI Advisory Panel Composition Aboriginal peoples Environmental NGO Economic/community development Social NGO including faith based groups Finance/investment International development Labour/workplace Media/communications MAC Board of Directors Junior Mining Company 11th CPAR - Whitehorse, Yukon 8 Representative

9 Canada s Northern Mining Operations Bellekeno (silver) Ekati (diamonds) Meadowbank (gold) Minto (copper) Wolverine (zinc) CanTung (tungsten) Diavik (diamonds) Snap Lake (diamonds) Mining Contribution to GDP ( ) (Source: Statistics Canada) Canada (National) 3.5% - 4% Provinces (South) 3% - 4% Northern Territories 21% - 68% 11th CPAR - Whitehorse, Yukon 9

10 Contribution to Northern Economies Employment 35,000+ person-years Production >$30 Billion over 3 decades in diamonds, copper, gold, silver, lead, zinc, tungsten Investment/Spending >$15 B+ in capital and operating expenditures Taxes ~$4 Billion to 2013 ~$6 Billion by th CPAR - Whitehorse, Yukon 10

11 Business and Social Development Local Business Development >$9 B Northern, $4 B Aboriginal contracts More than 50 new Aboriginal Businesses in the NWT alone Workforce & Social development Extensive programming in Aboriginal skills training and education >$100 million social and community contributions Support for health care, education and sports facilities 11th CPAR - Whitehorse, Yukon 11

12 Northern Realities (Canada vs. Europe!) Facts >1/3 of Canada s landmass Arctic conditions ~100,000 residents Most heavily subsidized region of Canada Communities dependent on Government - or resource development for employment Challenges High cost of living Little or no infrastructure ( BYO ) Employment opportunities are limited Resource development is the primary economic advantage Area of Canada s North = Norway, Sweden, Finland, Denmark, France, Germany, Poland, Spain, Portugal, Italy combined. 11th CPAR - Whitehorse, Yukon 12

13 Lack of northern infrastructure impedes development for communities and resources Few all-season roads means dependence on alternate access Requires winter roads, over land or ice with short window of supply narrow seasonal access Requires annual purchase of full year s supply inventory delivered by air or sealift Requires storage facilities for that inventory Requires airstrips All at very high cost, extensive planning, other limitations 11th CPAR - Whitehorse, Yukon 13

14 Northern Energy Supply Very limited hydro electric grids with no connectivity to outside producers; no opportunity to import power Off-grid power primarily diesel generation (Contributing to GHG production) Wind used in few locations Limited LNG use; lacks long-term storage technology All major cost considerations for communities and potential developers 14

15 Yukon 3 Wolverine Zinc 1 Minto Copper Bellekeno 2 Bellekeno - Silver Minto Yukon Roads Yukon - Long history of mining 1890s Klondike Gold Rush Currently 3 Mines brought into production $500 million investment Generates over 1,000 direct jobs and innovative First Nations partnerships Expanding the road network would enhance exploration opportunities Yukon roads infrastructure is the most advanced of the three territories Wolverine 15

16 Yukon Future Development New projects will represent another $3.5 - $5 billion in investment in the next 10 years Potential for 2,000 new mining jobs, plus equivalent in service sector Secure energy supply access to grid power Yukon as a northern gateway, with good transportation links to Asia Eagle Gold Carmacks Copper Casino Mactung Howard s Pass 16

17 Yukon Power Generation 133 megawatts (MW) power generation capacity Hydro accounts for about 70% from three dams. The remainder comes from diesel generation and a small amount from wind Yukon Development Corporation is introducing LNG and evaluating additional hydro facilities for future power generation Potential demand for 200 MW capacity by 2021 Yukon Energy Transmission Grid 17

18 Northwest Territories Roads NWT Road network mainly limited to the south Supplemented by winter ice roads NUNAVUT Ice Road Diamond Mines. 11th CPAR - Whitehorse, Yukon 18

19 Challenges Seasonal Ice Road Access Source: NWT Economic Outlook Diavik Companies joint venture of three Diamond Mines 400 km to operations - 75% over lake ice Sophisticated engineering support 2 month window to complete all haulage Annual number of loads ranges from 5,500 to 11,000 Major demand on trucking Impacts of Climate Change 11th CPAR - Whitehorse, Yukon 19

20 NWT Energy Options: Grid Power NWT All NWT hydro power was developed by mining operations Built to support mines and neighbouring communities Bluefish Con mine Snare Giant mine Taltson Pine Point mine All remain in operation today and continue to supply power to communities 11th CPAR - Whitehorse, Yukon 20

21 Energy Alternatives - NWT Hydro Expansion Project Project proposed to link existing isolated hydro facilities Cheaper power for communities and operating mines Displace millions of litres/year of diesel consumption annually Several hundred construction jobs Lower cost of living 11th CPAR - Whitehorse, Yukon 21 Courtesy: NWT Energy Corp

22 Nunavut Infrastructure is scarce But high mineral potential (Au, Fe, Zn, Diamonds, U) Nunavut 22

23 Nunavut needs road access Meadowbank Access Nunavut: Largest northern territory; isolated communities No public road network Three company-operated private access roads No long-distance power transmission grid One mine produces ~23% of Territorial GDP Total dependence on air or sea for access & supply Nunavut 11th CPAR - Whitehorse, Yukon 23

24 Nunavut - Energy Nunavut All Nunavut power is diesel generated (27 generators 25 communities) 24 hours/day, 365 days/year Highest energy costs in Canada Most supplies by annual sea-lift Requires inventory planning and storage Very high cost for communities and operations Iqaluit Meadowbank mine resupply Baker Lake, NU 11th CPAR - Whitehorse, Yukon 24

25 Nunavut supply means major shipping costs Supplies shipped from southern Canada Mine production shipped to southern or international markets Require deep water ports 11th CPAR - Whitehorse, Yukon 25

26 Meadowbank Mine (Nunavut s only mine) Supply and Logistics 52,000 tonnes of sealift supplies every weeks from Quebec 54M litres of fuel annually 400 passengers per week (air) 60,000 lbs of cargo per week Baker Meadowbank road year-round transportation for fuel, passengers, cargo Nunavut 11th CPAR - Whitehorse, Yukon 26

27 Northern Canada s Mining Potential More than $8 Billion in New Development in the Next Decade Hackett River (base metals) Hope Bay (gold) Eagle (gold) Casino (base metals) Mactung (tungsten) Izok (base metals) Courageous (gold) Ulu (gold) High Lake (base metals) Mary River (iron) Roche Bay (iron) Carmacks (base metals) Selwyn (base metals) NICO (gold, cobalt, bismuth) Prairie Creek (base metals, silver) Tyhee (gold) Tamerlane (base metals) Nechalacho (rare earths) Gahcho Kue (diamonds) Lupin (gold) Jericho (diamonds) Meliadine (gold) Kiggavik (uranium) Back River (gold) Committee Bay (gold) Chidliak (diamonds) 27

28 Canada s North: Promising Development Potential Canada s overall northern metal and non-metallic mineral output is expected to grow by 91% from 2011 to The Conference Board of Canada, January 2013 Northern Opportunity The least explored region in Canada Very high mineral potential. Major projects advancing towards development Anticipated new mineral production within five years. Several additional projects expected by th CPAR - Whitehorse, Yukon 28

29 Business Case: Infrastructure development can help Sustain the North Resource Development: North s primary economic advantage Employment and community benefits Capital investment business development Taxes & Royalties to Governments to further support healthy communities Infrastructure: Critical for regional development Critical for mineral development Providing infrastructure to support development also supports communities Improves the Quality of Life Reduces the need for Government subsidies and helps communities become more self-sufficient 11th CPAR - Whitehorse, Yukon 29

30 Federal and Territorial Governments Devolution to Territorial Governments Initiatives to facilitate northern development Working towards improving regulatory processes Funding for public geoscience Education and workforce training initiatives Negotiating to settle land claims Territorial initiatives to improve access and energy supply 11th CPAR - Whitehorse, Yukon 30

31 Thank You Merci FOR MORE INFORMATION PLEASE CONTACT: Rick Meyers Vice President, Technical and Northern Affairs Follow us on 22 31