The sudden halt of Ekati open-pit mining and the hundreds of layoffs that have followed have landed like a thunderclap across the Northwest Territories.
However, for those closely watching the Northwest Territories mining sector, it is no surprise SA国际影视传媒� it is the tragic culmination of years of warnings that went unheeded.
Ekati, the first diamond mine in Canada, put the NWT on the world stage as a primary diamond mining jurisdiction. For over 25 years, the territory has relied heavily on diamond production from the Ekati, Diavik, and Gahcho Kue mines to power its economy, support community investment and create thousands of jobs.
In 2023, mining contributed over 24 per cent to the territory's GDP, sustaining thousands of direct and indirect jobs. In fact, in strong years, the GDP from mining and its associated service companies exceeded 40 per cent. Yet, as these mines approach their inevitable end-of-life, no replacement projects have been advanced. This is not due to a lack of resources, but a failure of leadership.
For more than a decade, industry experts have urged territorial and federal governments to act, modernize regulations and incentivize exploration, which is the lifeline of the mining industry. Attracting investment is needed to ensure a smooth transition to the next generation of mines. Instead, the sector has been met with delay, indecision and a reluctance to change. The closure at Ekati is not an isolated incident SA国际影视传媒� it is a symptom of a broader structural decay in the NWTSA国际影视传媒檚 mining policy. Unless we act now, it may only be the beginning.
A crisis born of complacency
Three interrelated forces are contributing to this crisis: declining exploration, outdated systems and ineffective policy.
First, mineral exploration in the NWT has plummeted. According to Natural Resources Canada, exploration expenditures dropped from $115 million in 2018 to just $53 million in 2023 SA国际影视传媒� a decline of over 50 per cent in five years. This is not a global trend. In the same period, NunavutSA国际影视传媒檚 exploration spending remained stable, and YukonSA国际影视传媒檚 increased. Investors, not just in the mining industry, are shunning the NWT and instead choosing jurisdictions with clearer rules, better tenure systems and consistent support for the minerals industry.
Second, the NWT continues to rely on a 19th-century approach to tenure. Explorers must physically stake claims by pounding wooden posts into the ground, an archaic, costly and time-consuming method that few modern companies tolerate. By contrast, most progressive Canadian jurisdictions, including Nunavut, have adopted map staking, which allows claims to be registered online, reduces costs, improves access and unlocks exploration potential. The NWTSA国际影视传媒檚 insistence on clinging to antiquated practices is a barrier to entry, especially for small Indigenous and Northern prospectors.
Third, policy inertia has paralyzed progress. Despite the devolution of mineral rights from Canada to the GNWT in 2014, there has been little meaningful reform. One example is that the federal government has failed to implement a long-proposed North of 60 Mineral Exploration Tax Credit, despite internal government analysis reports that convincingly demonstrate it would significantly improve competitiveness. In the absence of decisive action, confidence is eroding.
The consequences of inaction
The consequences of this mismanagement are already being felt:
-Hundreds of workers at Ekati have now lost their jobs, magnifying DiavikSA国际影视传媒檚 closure in less than a year.
-The territorial economy risks losing its single most significant private-sector contributor.
-Communities that have come to rely on mining for employment, training and infrastructure investment face an uncertain future.
-Indigenous governments, who are equal partners in resource development, are watching their economic development aspirations recede.
Moreover, the broader message to global investors is chilling: the NWT is not open for business. And once investment capital leaves, it is challenging to bring back.
A call to action
This moment demands bold, coordinated action from the GNWT and its federal and Indigenous partners. Three steps must be taken immediately:
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Independent review of mining decline
Commission a full, independent investigation into the root causes of exploration and development decline in the NWT, including barriers in regulation, land access, permitting and Indigenous engagement. The report must include specific, actionable recommendations and a mechanism for implementation. -
Implement a North of 60 mineral exploration tax credit
Push the federal government to introduce a targeted tax credit to support mineral exploration in Northern Canada. Quebec, BC and others have long used similar incentives to significant effect. This is a cost-effective, shovel-ready policy that could yield transformative benefits. -
Modernize the tenure system
Move to computerized map staking now. It is a fundamental reform that industry has recommended for over eight years. It will dramatically reduce exploration costs, increase participation and demonstrate to the world that the NWT is committed to modernization and competitiveness.
Seizing control of the future
Devolution was supposed to give the North more control over its destiny. But with that control comes responsibility. If the GNWT and its partners fail to act now, the next decade will be defined not by growth and reconciliation, but by decline and economic isolation. This is the time for action, when the world is scrambling for resources. There are several NWT projects in the pipeline, including zinc, lithium, copper, cobalt, rare earths and more, but they require a system that encourages advancement, not one that impedes it.
The opportunity is still within reach. The NWT is rich in resources, talent and potential. What it lacks is the political courage to act decisively and the vision to lead. Will the GNWT and Indigenous governments rise to this challenge? Or will we watch another mine close, another investor walk away and another community be left behind?
Indigenous leaders, such as Grand Chief Jackson Lafferty of the Tlicho Government and Darrell Beaulieu, president and CEO of Denendeh Exploration and Mining Company Limited, have been walking the talk, and the NWT needs others to follow.
The world is watching. And the clock is ticking.
