MNI INTERVIEW: NWT Gains On Arctic Shipping, Carney Projects
Northwest Territories Premier R.J. Simpson told MNI the emergence of more Arctic shipping lanes and Canada's push to cut red tape will foster a "Golden Age" boosting critical mineral and energy production, diversifying away from a reliance on the United States.
Those gains are bigger than the potential drawback of jockeying for control of routes such as the Northwest Passage by say Russia or China, he said in an interview in Ottawa this week.
“Building the transportation corridors, and assisting with our energy projects, that’s going to allow us in the Northwest Territories to take advantage of our natural resources,” Simpson said. “That does create more opportunities for us as well, because now with shipping, we do have natural gas, we do have critical minerals that can be shipped a little more easily.”
Prime Minister Mark Carney's pledge to fast-track projects of national importance appears to be paying off, Simpson said. Carney,, who was born in the region, is devoting more time to northern projects in national plans than past governments, Simpson said.
“The desire for them to advance these projects and make the changes necessary to see the projects advance is there," he told MNI after speaking at an IRPP industrial policy conference. “I do feel like we are at the beginning of maybe even a Golden Age for Canadian business, given the new attitude.” (See: MNI: Carney Has Support To Break Longtime Big Project Barriers)
DIAMONDS TO LITHIUM
The stakes are high for the NWT with major diamond mines winding down after decades of operations and the government saying the economy is shrinking. While there has also been a slowing of oil and gas production, mineral exploration spending has more than doubled since the pandemic for products such as lithium.
The Northwest Territories has already been using a type of Carney's new "one project, one approval" system for about a decade after striking a power-sharing deal with the federal government, Simpson said. There are still "inefficiencies" but it has advanced projects that respect concerns of the majority Indigenous population around the northern environment, he said.
Alberta Premier Danielle Smith has led a push to build a heavy crude oil pipeline and talked of expanding a port in Churchill, Manitoba, to carry such goods through the north. Simpson said that while there has been development of natural gas for local use, an energy project mostly benefitting southern Canada and raising environmental questions would be harder to push through. (See: MNI INTERVIEW: Alberta Says BC Pipeline Must Be Fast-Tracked)
“When these projects are led by people in the territories, there’s a lot more opportunity for buy-in," Simpson said. Locals “would have the same concerns as I guess most Canadians would have about something like that. That’s not to say it’s not possible, but we have a system in place.”
President Donald Trump's threatening Canada's economy has done more than just about anyone to spur new projects, the premier said. “Even people who might disagree with President Trump agree that he’s really united Canada and really pointed us in this direction. We’re seeing it all over the country, people want to be more self-sufficient and less reliant on a single trading partner.”
