Mahsi, Mr. Speaker. Today I would like to talk about the benefits of small-scale mining and value-added processing. Small-scale mining developments are increasingly being seen as the best way to develop new technology materials and specialty material deposits, such as those found in the NWT's rare earths and lithium resources.
Mr. Speaker, new demand for clean technology is creating new uses for traditionally un-mined materials. Investors in spin-off industries are very intrigued by the potential opportunities that are associated with unlocking new rare earth minerals. However, in order to secure long-term funding commitments with high-tech investors, resource samples will be needed to confirm product compatibility and consumer confidence.
Mr. Speaker, some advantages to small-scale mining include much smaller capital expenditure requirements compared to a larger-scale mining operations. The cost differential amounts to tens of millions of dollars versus hundreds, or millions, or even billions of dollars for large-scale mines.
In addition, Mr. Speaker, the smaller the scale, the smaller the environmental footprint. Small-scale development allows for progressive remediation strategies to be implemented right from the start-up. This enables the site to be fully rehabilitated upon mine closure. Furthermore, local Indigenous businesses can be equity partners in development due to the nature of capital requirements for small-scale operations.
Mr. Speaker, the known subsurface resources at Nechalacho are highly suitable for this type of small-scale development approach. This technology does not require the use of water or hazardous chemicals in extracting the minerals for economic interest.
Mr. Speaker, this sustainable development approach, particularly in partnership with Indigenous groups, represents the future of the mineral industry. At this time, the NWT holds a great opportunity to demonstrate this new model and become a North American leader in the sustainable production of clean technology materials. Mahsi, Mr. Speaker.