Northwest Territories on the Brink of Losing Diamond Mines, Economist Warns
In a stark warning to residents of the Northwest Territories, Yellowknife economist Graeme Clinton has emphasized the looming loss of diamond mines that are crucial to the region’s economy. Clinton’s paper, endorsed by the NWT and Nunavut Chamber of Mines, highlights the unsettling reality that thousands of jobs and millions of dollars in revenue are about to vanish.
The closure of major diamond mines, including Diavik in two years, poses a significant threat to the region’s economic stability. With over 1,300 jobs directly linked to these mines in Yellowknife alone, the impact on employment income is estimated to be around $170 to $180 million. The subsequent exodus of people seeking employment elsewhere could further exacerbate the population stagnation the territory has been experiencing for over a decade.
While the mining industry remains a cornerstone of the North’s economy, Clinton stresses the need for diversification and alternative revenue sources. However, he cautions that without the substantial income generated by mining, other sectors like tourism, conservation, and fishing may require significant taxpayer investment to survive.
As the Chamber of Mines pushes for a renewed focus on mineral exploration and development in the North, Clinton urges leaders to engage in meaningful discussions about the region’s economic future. With the clock ticking on the impending closures of key diamond mines, the territory faces a pivotal moment in determining its path forward.
Residents and policymakers alike are encouraged to confront the stark reality laid out in Clinton’s paper and work towards a comprehensive vision for the territory’s economic sustainability. As the Northwest Territories brace for a period of transition and uncertainty, the call for strategic planning and investment in new industries becomes more urgent than ever.
