Mr. Speaker, I would like to bring Members up to date on the status of BHP's NWT diamonds project.
It has been four and a half years since the first announcement of the discovery of a diamond-bearing kimberlite pipe at Point Lake. Since that time, BHP has found diamond-bearing kimberlite pipes that are sufficient to support a mine development with a life of 25 plus years. As of this April, BHP has spent $172 million on the project, including about $50 million in expenditures here in the Northwest Territories.
This project has the potential of providing a very large infusion of jobs and business opportunities into the northern economy. It has also raised a number of issues and concerns about environmental impacts of large-scale development on our lands.
A federal environmental assessment panel was established in late 1994 and, by the end of June, will submit its report and recommendations to the federal Ministers of the Environment and Indian Affairs and Northern Development, as well as the Premier of the Northwest Territories, The Dogrib Treaty 11 Council, the Yellowknives Dene Band and Nunavut Tunngavik Incorporated.
The report and its recommendations will be reviewed by federal Cabinet; the Minister of Indian Affairs and Northern Development will issue the formal federal response about the project's acceptability. Ultimately, the decision on whether the project will proceed is the responsibility of the federal government.
This project, and the review of the project, has been precedent-setting in many ways. We are looking at the first major diamond mine in North America. The mine will generate revenues and economic benefits on a scale that has not been seen before for a mining project in the Northwest Territories.
The panel was the first federal panel that required a proponent to give full and equal consideration of traditional knowledge of the aboriginal people.
Scoping sessions and public meetings were held in many communities. The panel visited Wha Ti, Rae Lakes, Rae-Edzo, Snare Lake, Lutsel K'e, Kugluktuk, Umingmaktok, Deline, Ndilo, Dettah and Yellowknife. Northerners were given the opportunity to make their views known to the panel members.
The environmental and socio-economic impacts of the project are a major concern to northerners. After hearing many presentations and studying many reports during the review process, this government has concluded that no significant adverse social, economic or environmental impacts are likely to occur if the appropriate mitigation and monitoring is done. DIAND is of a similar opinion and has concluded that the project could be adequately regulated based on the information provided by BHP during the review process.
If the federal government approves the project, we are not at the end of the decision-making process, but rather the beginning. A first step in a process of regulating mine development, operation, closure and abandonment; a process that will span decades.
There are many opportunities ahead to influence the way this mine is developed and operated, to ensure that the environment is protected, that northerners benefit from the project and that BHP lives up to its commitments and promises.
One of the first opportunities is the permitting process for the mine. BHP has applied for the permits they need for mine development, including their water licence, surface lease and approvals from the federal Department of Fisheries and Oceans and the Canada Coast Guard. Even though there has been a full panel review of the project, there will be additional opportunities for public comment and comments from the territorial government, as BHP's applications are circulated for review. This will be a chance to ensure that environmental safeguards are built into the permits and approvals.
Assuming a positive federal response to the panel report around mid-July or early August, BHP has sketched out a work schedule for the next few years. They will start hiring construction workers in the fall of this year for construction of a 400-person permanent camp. The construction workforce will be about 1,000 people. The camp will be built over the 1996-97 winter road season and will be used as a base for construction of the rest of the mine facilities.
BHP expects to start hiring mine workers mid-1997. They are two years away from having their full complement of workers for the mine. BHP hopes to start production in the early part of 1998 with a mine workforce of about 830 people during full operation. BHP has agreed to make Yellowknife their point of hire and has a policy of aboriginal and northern hiring preference.
The agreements cover subjects such as training, employment, business opportunities, workplace conditions and environmental protection. These agreements are an important vehicle for making sure that aboriginal people can benefit fully from the project.
The territorial government is also participating in a precedent setting initiative called the "NWT community mobilization partnership strategy."
The community mobilization strategy is more comprehensive and more inclusive than anything that has been tried here in the past. It includes government, business and community members. The strategy works with the skills, capacities and talents of community members. It does not dwell on problems or what is missing but focuses on what can be done. It looks beyond just employment and business opportunities at a single mine, to an array of other opportunities in a growing, healthy NWT economy.
Relationships and partnerships between communities, business, government and non-government partners are being built and evolved in this process.
Mr. Speaker, this week, about 130 community members and business and government partners are participating in phase III of the strategy: an action planning forum being held at BHP's Koala Camp. This is a forum for discussing short and long-term job development strategies, including business and career opportunities.
This type of forum is important if BHP is going to meet its stated objective of making 69 per cent of its mine operation expenditures in the NWT and having a mine workforce where two-thirds of the workers are northerners and of the northern workers, one-half are aboriginal people. These objectives may be optimistic and will not be met unless northerners are trained and prepared.
BHP has made commitments to ensure northern and aboriginal benefits. However, mining companies in the past have had problems living up to their promises about participation levels of northerners.
I, therefore, intend to work with BHP on an agreement to itemize the commitments they have made and monitor their success in meeting the commitments. If there are problems, we will need to examine what we can do to work together and correct them.
In looking at this project, I am concerned about the fact that there are already a large number of jobs in the mining and oil and gas industries, as well as other sectors of the economy, which are filled by imported workers, while our residents and long-term northerners stay on social assistance. Mr. Speaker, we have to take a serious look at the design of our income support programs to ensure that adequate incentives and support are in place to ensure that employable northern residents take advantage of the available employment opportunities.
The departments of Energy, Mines and Petroleum Resources and Education, Culture and Employment are looking at new strategies for training northerners for jobs in the mineral industry. One of the projects that we are working on through the community mobilization strategy is a pilot project for a phased approach to a mining and related-industry jobshadowing training program. It will lead to meaningful job experience in the mineral and related industry and will expose students to potential employers.
In conclusion, Mr. Speaker, this mine offers many significant opportunities for northerners. As a government, we cannot become complacent once we hear the federal decision has been made. We must continue to work with BHP, the communities and the federal government to maximize the benefits from this mine, and minimize any negative impacts. Thank you.
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