According to the territorial government’s senior economist, Francois Picotte, Nunavut will be entering into it’s most prosperous period in history.
In the next four years there is a huge expected increase in mine exploration production, and capital investment. Mainly in the areas of Gold and Iron ore, mineral production is expected to at least double.
“By 2020 we expect to reach an amount of production that will probably hit $1.5 billion. That’s twice as much as was produced in 2016,” Picotte said
One major player in these recent developments is Agnico Eagle (AEM – T). Agnico will be opening two new sites in Nunavut. Over the next two years, the Canadian-based gold producer has already committed to invest US $1.2 billion into mining development in Nunavut. About one quarter will be invested in developing Amaruq and three quarters into Meliadine.
Production is also expected to increase at TMAC Resources’ (TRM – T) new Hope Bay mine located in the Kitikmeot region, as well as at Baffinland’s existing Mary River mine on Baffin Island.
Mineral exploration in the region is also on the uprise due to better prices and existing mines desire to extend their life cycles.
“A lot of the exploration is carried out by mining companies around the periphery of their existing mines because they want to make sure their mine life could be extended as much as possible in order to reduce relative cost of initial investment,” Picotte explained. “There is also a bit more optimism in the mining sector, as metal prices have gone up as well.”
Since the establishment of Nunavut, it has seen abnormally high GDP growth. Mining is estimated to grow faster than the rest of the economy and have a positive effect on all other sectors.
All of the mines in development, except for the Mary River, are gold mines contributing to what looks like a bright and shining future for Nunavut.