This is like déjà vu all over again.
I think one thing you have to do is turn to page 2-27 and realize that the government has expended $2 million already in regard to the environmental assessment review, collecting data. The $3 million is now taking us into an environmental process in regard to that process. So we’ve already made a capital investment.
But I also have to point out that a large portion of the money that’s listed there came from the federal government through federal green initiatives. Also, there was legislation passed in this Legislature prior to the end of the 15th Assembly, in which legislation
was developed — the Hydro Corporation Act — which formulated the corporation specifically for this
project, in which it will receive certain types of exemptions. It is exempt from the PUB process, and also, it’s a business deal between the mining companies to sign on to a power purchase agreement and Deze Energy.
I think one thing people have to realize — and I found it kind of alarming to hear — is that the government is now looking at rerouting. I know we looked at the feasibility of that proposition, to look at the second phase of an expansion in regard to the Snare Cascades system, eventually running power to places like Fort Providence and other places. This work has already been done.
I know we looked at the amount of money to run a line from Behchoko all the way down to Providence and vice versa, to go from Hay River to Providence. You’re looking at somewhere in excess of a $70 million investment.
I think that at the end of the day you have to realize that until we have an energy plan of some sort to really identify where we’re going — I know Mr. McLeod touched on the issue of where we’re going with the diesel communities — what’s the benefit to the Northwest Territories?
I think also, at the end of it all, what happens after 20 years of mining development in the diamond mines? There is a lifetime for these diamond mines, and they will run out. So you had to design this in such a way that you were able to move the line to where it’s probably going to be used in the next ten or 15 years, and the most ideal place was going directly to Yellowknife. You’re already in that grid. It’s a matter of running from the diamond mine back around to Yellowknife or tie into the southern grid.
I think that from what I hear here, a lot of that information is out there. It’s just a matter of having it tabled in this Legislature for people to see. The history is there; the process is there.
We’ve already made a major investment of $2 million, and what’s here in front of us, $3 million, so it’s going to be a $5 million investment on this specific project, which is a business deal between the Power Corporation, Deze Energy, and the mining companies. It’s a business deal. I think I’d just like to point out that we’ve made all these investments, so to hear now that you’re going to talk about rerouting….
I think the other thing you have to realize is that as soon as you reroute that route, you’re crossing other people’s traditional territories, and they will want buy-in. You’re talking about the Deh Cho; you’re talking about the Tlicho communities, if you’re going around the other route. I mean, again, you’re trying to bring out something that at the end of the day.... It’s the cost of going back and starting
over. I think you’re basically going to delay this project to a point where right now it’s questionable if it’s economically viable.
Basically, BHP only has maybe five or eight years of life left in that mine. Once they’re off the grid, the economics of this project is questionable.
So I’ve been sitting here, hearing what’s been discussed here. I
mean, legislation has been
passed in this Legislative Assembly to take on this project. We’ve got federal money — basically, the majority of this money is federal money — to fund this project. They did look at the possibility of rerouting this thing, and the economics of rerouting are just not there. It’s not a viable project if you reroute the route from the Taltson phase
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expansion to the other area.
I’m not too sure if I can explain it a little better than that, but I think someone is either misleading the process by way of saying, “Let’s do something else,” or telling the mining industry, “Well, sorry; we’re reneging on our commitment to you.” My view is that this is a business deal, and you either change the rules or let us know now. From what I’m hearing, the practicality is not there.
Since I’m on a roll, I might as well also mention the number that you mentioned, the 45 megawatts. I believe you’re only talking 35 megawatts, because there’s a ten megawatt surplus in the Taltson system right now, and that’s what’s being used for the projects in Fort Smith by way of electric heat processes. Those ten megawatts are owned and controlled by the Northwest Territories Power Corporation, to decide at the end of the day if they’re going to sell it to the companies or keep it for the communities. I don’t know if you’ll want to respond to that or not.