Learning material #3 Flashcards
what happened at uranium city
Mineral exploration, for example, while active before World War II, expanded northward in the post-war period. Uranium was of particular interest, and the Middle North saw the development of Uranium City in Saskatchewan and Elliot Lake in Ontario. These developments, however, were subject to the influences of the global economy, and a series of boom-and-bust cycles (Refer to Vignette 5.8, Bone 2016) marked their history. Uranium City, a resource town, suffered when the uranium mine was decommissioned in the early 1980s. The mines at Elliot Lake are no longer economic, have been closed, and the town is now marketed as a retirement community.
Eldorado started the resource town in 1952, during the Cold War period when interest in uranium was high. The company shut down operations in 1981, and as the community was too remote to sustain any other use, the population all but disappeared.
It has been estimated that the Mackenzie Valley, Beaufort Sea, and Arctic Archipelago contain one half of Canada’s potential oil resources and two thirds of the nation’s potential gas resources These quantities do not, however, guarantee success. Gurston Dacks (1981) identifies five factors which must be considered in the development equation:
what are the 5 , what should be a sixth?
- Quantity and richness of the resource. Many locations contain excellent supplies of resources. Northern Saskatchewan, for example, has deposits of gold and uranium. Diamonds, although not in commercial quantity, are being found in the southern boreal forest fringe.
- Cost. A resource is only commercially viable when it commands enough interest on the world market to make it of interest to developers seeking a profit. Northern developments have inherently high costs of development which can reduce profits significantly.
- Uncertainty and risk. Technology, regulations, and the often isolated locations all provide an element of risk which must be considered by Northern developers.
- Relationship between price and supply. An increased price for resource products does not necessarily mean Northern development will respond. Southern Canada also has supplies of many of these resources and, often, these supplies will be developed first.
5.Politics. Government interaction often leads to resource development. For example, a government decision to reduce oil and gas imports could spur development in the North. On the other hand, new and stricter environmental regulations are doing their part in influencing development, for the good of the environment.
Recently, Enbridge’s proposed Northern Gateway pipeline project
Recently, Enbridge’s proposed Northern Gateway pipeline project is receiving intense public scrutiny, particularly after recent significant pipeline leaks at other locations owned by the proponent. The future of this proposed project remains uncertain.
Finally, the characteristics of Northern Canada’s geography must be considered in the development equation. There are many geographic factors that influence development activities and success. These include
harsh climate, the biophysical framework, the distance factor, the lack of a transportation infrastructure, and the sparsely distributed population. Transportation is particularly important and also a factor that is influenced by the terrain, harsh climate, and the vast distances to market (see the following Learning Activity).
Megaprojects
are huge industrial undertakings that transform small areas of the northern hinterland into industrial nodes with the sole purpose of exporting a commodity to other parts of the world. (Bone, 2016, p.
What are engines of growth for the regional economy.
Many of these megaprojects are associated with oil and gas developments, while other significant developments have been in the mining sector (e.g., diamonds, iron ore, etc.). Often these multi-billion dollar projects become the engines of growth for the regional economy.
Recent economic development of the Provincial North has been based on four economic elements:
: mining, forestry, hydro-electricity and government expenditures
what happened in schefferville
Since World War II mining has expanded into base metals and lower grade properties. For example, in the late 1940s iron ore deposits were developed in central Labrador. This mega-project resulted in the 1953 creation of Schefferville, a resource town. Associated with the development was a 600 km long railway connecting the town to the St. Lawrence River. The project was producing huge volumes of iron ore (12 million tons per year) and other properties in the region were soon developed. However, Schefferville was also a good example of what could happen to a resource town in a boom-and-bust cycle. Its population grew to be more than 3000 in 1979, but by 1983 it was virtually a ghost town as iron ore became unprofitable.
what happened at thompson
Thompson is another example of what can happen to some resource towns. Unlike the many that have died out, Thompson developed into a much larger community and became more diversified. It became a regional service centre and more resilient to world nickel price fluctuations.
diamonds in the NWT. mines and what they have provided
Ekati Diamond Mine began operation in1999 with others soon following (e.g., Diavik, Snap Lake, Jericho) (Figure 3-1). However, while some of the mines have been thriving, some stopped production after only a few years – highlighting the sensitivity Northern resource development projects have to costs of production. The operating mines produce many jobs for NWT residents, as well as millions of dollars in revenue. Diamonds became the “engine of growth” for the Northwest Territories. In addition to mines, the region has seen significant development in ancillary activities, such as diamond cutting and polishing located in Yellowknife. However, many of the most accessible diamonds have now been removed, and eventually the industry will be much less significant to NWT as mines are reaching their end – projected to be around 2030.
WHAT about nunavuts mineral potential
However, much of the mineral potential of Nunavut is unknown. Activity over the next few years will be concentrating on exploration and expanding the geological knowledge of the region.
oil in the NWT
Crude oil is being produced at Norman Wells and has been since 1943. Actually, a small production began in the 1920s but was for local use only. Imperial Oil, the operator, has a production lease extending to the year 2020. The Norman Wells production of about 11 to 12 million barrels of oil per year represents the fourth largest producing oil field in Canada.
WHAT WAS the Berger Commission
As you will remember from a previous module, the Northwest Territories experienced an oil and gas moratorium that affected the region. From 1977 to 1994, a moratorium on the issuance of exploration rights for oil and natural gas was in place within the Mackenzie Valley and southern NWT. This was a response to the Berger Commission, which recommended that no more oil and gas exploration be pursued until outstanding land claims had been settled.
Exploration licenses issued before the moratorium were honoured and did result in some significant finds. However, generally the moratorium did hinder oil and gas exploration and discovery.
Three regions within the Territorial North have been of particular interest in recent decades and are briefly discussed below:
The Southern Mackenzie Valley
The Central Mackenzie Valley
The Mackenzie Delta and Beaufort Sea
The Mackenzie Delta and Beaufort Sea
This corresponds to the Inuvialuit Region and also received little exploration during the 1980s and early 1990s. The last exploration well had been drilled in 1992, but because of the lack of a pipeline transportation system, exploration did not really go anywhere. Activity would intensify by the end of the decade. In 1999, the Northern Oil and Gas Directorate of the Department of Indian Affairs and Northern Development announced that four parcels would be open for exploration. These parcels cover most of the delta region and range in size from 72 to 75,000 hectares. Some of the companies winning the bids were: Petro-Canada, Anderson Exploration, Poco Petroleum and Burlington Resources. In 2000, another ten exploration parcels were announced, and successful companies included Petro-Canada, Anderson Resources, and Chevron Canada. These were put out to bid by the Inuvialuit Regional Corporation. Each bidder provided cash, as well as being committed to certain conditions. The Inuvialuit Regional Corporation received royalties on production, totaling
5-10% of total revenue and received a yearly administration fee of $100,000
This exploration activity is an example of how the land claim has affected development in the region. Royalties for resource use are being paid directly to the Corporation established when the Inuvialuit Land Claim was settled. This bypasses the federal government role and is a significant step forward for the Inuit of this region.
