.Trev,
Here is some food for thought:
I pulled this article off the web site from the regional newspaper for Edmonton, Alberta, Canada.
Land of diamonds -- and jobs There are major oil and gas reserves, too, N.W.T. premier tells chamber
Bryant Avery, Journal Business Writer The Edmonton Journal
Brian Gavriloff, The Journal / Northwest Territories Premier Stephen Kakfwi at the Chamber of Commerce meeting Friday. He sees the need for an influx of workers and is looking for ways the people of the North can benefit.
There aren't enough workers in the Northwest Territories to handle all the North's potential diamond and natural gas projects, N.W.T. Premier Stephen Kakfwi said Friday in Edmonton.
He told an Edmonton business audience if all the proposed projects proceed, "we will not have the manpower to put on those jobs, so we would have to import literally hundreds of people from the South. We'd be creating jobs for you."
That's not a bad thing, Kakfwi said in an interview. "It's just there's nothing in it for me -- there's nothing in it for the people of the North."
To ensure that the North -- home to only 40,000 people -- gets its share of benefits, the N.W.T. government may demand an aboriginal ownership stake in certain projects, he told members of the Edmonton Chamber of Commerce.
Rich Reserves
There are rich untapped oil and gas reserves all along the Mackenzie Valley from Tuktoyaktuk to Fort Liard. Producers and pipeline companies are weighing the feasibility of a major natural gas pipeline.
Northeast of Yellowknife, there is one operating diamond mine (Ekati), one under construction (Diavik) and two others in the wings (Winspear and Monopros/De Beers).
Kakfwi cited Winspear Resources as one developer that might need to form an equity partnership with a northern aboriginal company. Winspear is about a month away from filing environmental assessment papers to develop a $260-million diamond mine 225 km northeast of Yellowknife.
Jurisdiction An Issue
Kakfwi is also negotiating with the federal government to get jurisdiction over northern land, resources and royalties. The first meeting of a new intergovernmental forum was held May 5.
But those negotiations may take time. "Without getting a share of (Winspear), or without getting an agreement on revenue sharing, it is going to be difficult to reap economic benefits from Winspear," Kakfwi said.
"We're not saying, 'Just go ahead, take our diamonds and northern gas -- take it out and have a good time at our expense,' " Kakfwi said.
"Other options such as taking an equity in the company by aboriginal groups may be the only other suggestion."
The premier's comments caught Winspear executive vice-president John McDonald flat-footed. "I'd have to pass on that," he responded to a question about the premier's comments.
Winspear is aware of the need to include northern groups in any development, he said. The same was expected of both Ekati, owned by BHP and Dia Met, and Diavik, owned by RTZ and Aber Resources.
Both companies have made commitments to aboriginal training and jobs.
"But we're trying to stay on the top of a rolling ball," McDonald said.
To the chamber members, Kakfwi issued an invitation.
"It is obvious that there are tremendous opportunities for your businesses from the development of northern mineral and oil and gas resources," Kakfwi said. "You have the equipment and the manpower and you have the service industry."
'Absolutely Bang-On'
Sandy Slator, president and CEO of PTI Group Inc. which has built and run work camps in the North since 1978, said northern opportunities are exciting. "From a development perspective, you haven't seen anything yet."
He approved of Kakfwi's demand for northern gains. "What the leaders of the N.W.T. are doing right now is absolutely bang-on," Slator said. PTI has a partnership with the Yellowknife Dene in Ekati Services Ltd.
Kakfwi also noted that any pipeline along the Mackenzie River valley is likely to be managed by and at least partially owned by natives. "TransCanada (PipeLines) is up there every day," he said, and Westcoast and several U.S. consortiums are also studying options. Enbridge has an oil pipeline from Norman Wells to Zama, Alta., plus a gas pipeline system around Inuvik.
N.W.T. TRADE
Northwest Territories Premier Stephen Kakfwi reminded the Edmonton Chamber of Commerce how large the trade is between Alberta and the N.W.T.
- Between 1991 and 1996, 28 per cent of the N.W.T.'s imports ($1 billion annually) came from Alberta and total trade averaged $385 million per year.
- The operating crew at Ekati diamond mine totals 600 and Diavik will have 400 on site when it is completed. Many live in Edmonton.
- Nearly 70 per cent of the construction costs for the $1.3-billion Diavik project will be spent in Alberta. |
