Policy Improvements Needed to Make NWT & Nunavut More Attractive

25 February 2016

(Yellowknife, NT – February 25, 2016) Mining company executives report that the length of time it takes to get approval for mining exploration permits has grown longer and more onerous over time in Canada, particularly in the Northwest Territories. A new report released by the Fraser Institute on February 23, “Permit Times for Exploration: How Long Are They?” surveyed mining executives on their perceptions of exploration permitting timelines across Canada.

Overall, Saskatchewan emerged at the top of the scale as the most attractive and competitive jurisdiction for receiving exploration permits. The NWT and Ontario were ranked last and second to last respectively. Nunavut was ranked fourth of the ten jurisdictions that were surveyed. The rankings are summarized in the attached charts.

Lengthy permit approvals can add costs and uncertainty to an already high risk endeavour. Three specific areas related to permit approvals were examined: time, transparency and certainty. 

• Time: Explorers are waiting much longer than in the past for permits in all three Canadian territories. The NWT and Nunavut have the two lowest percentages of respondents who acquired permits in six months or less, comparing poorly to other provinces.
• Transparency: On the ability of explorers to understand the rules and how they are applied, the NWT emerged with the poorest rating. Nunavut fared slightly better, although a large number of respondents still found transparency there to be a deterrent to investment.
• Certainty: When asked of their certainty in receiving the permits necessary to explore, nearly one third of respondents reported low to no confidence in Ontario and the NWT.

The NWT & Nunavut Chamber of Mines and its members continue to seek government support for improvements to the regulatory system in the NWT and Nunavut. Permitting conditions are one factor that has contributed to a dramatic decrease in exploration investment in the NWT where exploration investment has fallen and flat-lined since 2007. Over the same period Nunavut, with similar mineral potential, has benefitted by attracting an extra $1.7 billion in exploration investment.

These are very difficult times for the minerals industry, with low commodity prices and reduced investor confidence having major negative impacts. The Chamber of Mines urges federal, territorial and indigenous governments to reduce permitting timelines, provide clear rules on permitting processes, settle land claims and increase certainty around lands open to development with balanced land use plans and policies. To quote the authors of the Fraser Institute report, “policy reform in this area may help Canada’s provinces and territories unlock their considerable mineral potential.”

Access the Executive Summary, the full report, and graphics here. For more information on the NWT and Nunavut mineral industries, please visit the website at www.miningnorth.com or contact Tom Hoefer, Executive Director at Tel: 867-873-5281 or email: executivedirector@miningnorth.com. 

View Details