Marsi cho, Mr. Speaker. Mr. Speaker, today I would like to talk about a resource development project that has been in the works for the last several years within the riding of Tu Nedhe-Wiilideh. The project that I am referring to is the Nechalacho Rare Earth Elements Project, which is located 100 kilometres southeast of Yellowknife at Thor Lake.
Mr. Speaker, this project is a unique economic opportunity for not only the NWT, but for our country and our global allies. I say this because currently there are no such resource development projects that exist anywhere in North America. That is because the vast majority of the world's rare earth reserves lie in China, who currently supplies 86 percent of global rare earth demand. However, China's dominance in this industry will not be eternal because, if the current rate of production is maintained, they have about 10 to 15 years' worth of estimated supply remaining. This opens the door for a more competitive market for other countries to supply this ever-increasing demand for this resource.
Mr. Speaker, for those who may not know, let me share with you some of the many uses where rare earth elements are used throughout the world. Generally, rare earths are manufactured in small quantities by large industries and placed in such products as televisions, cell phones, computers, automobiles, jets, and medical devices. Rare earths are also widely used within renewable energy resources, such as turbines, electric cars, energy-efficient lighting, and rechargeable batteries. Given the ongoing global transformation of energy systems, analysts predict that the demand for rare earth elements will continue to grow in the foreseeable future.
In addition to these reasons, Mr. Speaker, I also point out that the project has great potential for helping to alleviate the growing economic woes the NWT is experiencing due to the receding life of our diamond mines. Not only would this project help employ local people during the construction period, but Avalon, the company building the project, will have many jobs available during production.
Overall, Mr. Speaker, I think the project will open many doors for the NWT because I believe the new emerging industry growing within our territory has strong potential to attract spin-off industries and will benefit the entire NWT. Thank you, Mr. Speaker.