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A Brief Background ) The Northwest Territories (NWT) and Nunavut (NU) encompass nearly 12 percent of Canada's landmass. At 1.17 million km2 (0.453 million square miles), it boasts nearly twice the landmass of Texas, or about the same area as France and Spain combined. A July 2000 consensus recorded the region's population at 42,083. Two major climate zones divide the region, the Arctic and sub-Arctic.Temperatures in the sub-Arctic fall below 0°C seven months of the year. In the Arctic, the average daily temperature of the warmest month of the year does not exceed 10°C. North of the Arctic Circle the sun does not set on June 21, the longest day of the year, and does not rise on December 21, the shortest day of the year. The geography and terrain is diverse with mountain ranges, roaring rivers cutting through steep canyons including one of the world's longest rivers, and two lakes as big as inland seas. Most of the area is a barren arctic desert known as the tundra. Flat terrain covered by thousands of lakes support several varieties of plant life, low-growing vegetation, flowers, edible berries, shore and nesting birds and provides summer grazing grounds of massive caribou herds and other animals. Natural Resources of the Northwest Territories and Nunavut The Northwest Territories and Nunavut has a rich mining history with an economy and infrastructure based primarily on the minerals industry. Mining is the single largest private sector industry in the Northwest Territories and Nunavut, with mineral exploration expenditures last year higher than in any other Canadian jurisdiction. A secure investment climate with support for mining from the local government and aboriginal peoples, competitive tax rates, an eager and available workforce, and a highly favourable geology reflects a bright mining future in the Northwest Territories and Nunavut. Precious metals such as gold and silver have historically been the motivation for exploration and development in the region. Since 1992 the lure of diamonds resulted in an unprecedented exploration rush and the development of Canada's first diamond mine, the Ekati Diamond Mine. Production began in the autumn of 1998 and a second diamond mine, the Diavik Diamond Mine is expected to begin production by the end of the 1st Quarter 2003. A third diamond mine, the Snap Lake Diamond Project, is expected to be in production by 2006. The Ekati Diamond Mine is a joint venture between BHP Billiton. Initial plans call for mining five kimberlite pipes over a span of 17 years. It is anticipated the mine will produce five million carats per year or 4% of the world production. At an initial cost of CC$1 billion, the mine has seen a return on its expenditures after two years of production. Annual revenue through the life of the mine is expected to remain somewhere in the neighbourhood of C$400 to C$500 million. By April 2003, Canada's second diamond mine is expected to start production. Located approximately 30 kilometres southeast of the Ekati Mine, the Diavik Diamonds Project is a joint venture between Aber Diamond Corp (40%) and Diavik Diamond Mines Inc (60%). Capital costs for the project are estimated at C$1.3 billion. Over its twenty year mine life, annual diamond production is expected to peak at 6 million carats. Based on a US$63/carat evaluation, annual revenue could reach C$582 million. De Beers Canada is currently involved with two advanced projects in the Northwest Territories. The most advanced project is it's 100% owned Snap Lake Diamond Project, located 220 kilometres northeast of Yellowknife, is scheduled to become the company's first diamond mine outside southern Africa, during the last quarter of 2005. Based on a production rate of 3,000 tonnes/day, the underground mine is expected to generate approximately one half of the annual revenue attributed to the Ekati and Diavik mines. Maps and Photos
http://www.gov.nt.ca/RWED/diamond/index.htm | | ||||||||||||||||||||||||||||||||||
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