{"id":650126,"date":"2026-05-05T21:16:11","date_gmt":"2026-05-05T21:16:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/650126\/"},"modified":"2026-05-05T21:16:11","modified_gmt":"2026-05-05T21:16:11","slug":"major-projects-on-the-arctic-security-corridor-arent-canadian-but-miners-say-theyll-still-benefit-nunavut","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/650126\/","title":{"rendered":"Major projects on the Arctic Security Corridor aren\u2019t Canadian, but miners say they\u2019ll still benefit Nunavut"},"content":{"rendered":"

The Grays Bay Port and Road project in Nunavut promises to unlock the region’s mining potential, but questions remain about how much of the revenue those projects generate will stay in Nunavut. <\/p>\n

The West Kitikmeot Resources Corp., the proponent of the project, says there’s a trove of rich deposits at the High Lake, Izok Lake and Hackett River areas.<\/p>\n

They\u2019re not far from the proposed port and road project \u2013 one part of the Arctic economic and security corridor which features a 230-kilometre all-season road towards the N.W.T. border, a new deepwater port on the Northwest Passage, and a roughly 1.8 kilometre-long airstrip.\u00a0<\/p>\n

But the two companies that own mineral assets at those three sites are based overseas.<\/p>\n

Geoff McCarney, executive director of the University of Ottawa\u2019s Smart Prosperity Institute, believes Canada’s development and extraction business is increasingly being dominated by foreign investors \u2013 which hasn’t always been a bad thing.<\/p>\n

\u201cIt was thought to produce more investment, but what’s ended up happening is we also see a lack of sort of longer term strategic thinking of investments needed to continue to grow the sector in Canada,\u201d he said.\u00a0<\/p>\n

But Brendan Bell, CEO of the West Kitikmeot Resources Corp., said shareholders of mining companies are scattered around the world, and ownership of publicly-traded companies changes all the time.\u00a0<\/p>\n

\u201cYou can’t build projects that are going to live for 50 years on the basis of ownership of any company,\u201d he said. \u201cI think our focus is not so much on ownership of the shares of these various multinational mining companies. It should be on local benefits, the things that we can control.\u201d<\/p>\n

Jobs, royalties and taxes<\/p>\n

The things Nunavummiut can control, in Bell\u2019s eyes, are jobs, royalties and taxes.\u00a0<\/p>\n

Troy Hey, the executive general manager of corporate relations with MMG Ltd., a China-backed base metals producer headquartered in Australia, says the company has spent $80 million exploring the Izok and High Lake sites since 2009 and has uncovered rich deposits of zinc and copper. <\/p>\n

But MMG Ltd. needs an easy way to transport those minerals for export. It previously tried to set up its own port and road project that somewhat mirrors the West Kitikmeot Resources Corp.\u2019s endeavours, but Hey said it was too costly. This new proposed corridor would mean MMG Ltd. can just focus on financing its mines.<\/p>\n

\u201cWhat was a dream some 20 years ago is now turning into much more like a reality,” Hey said.<\/p>\n

\"threeThe camp at Izok Lake which was refurbished in 2025. MMG Ltd. says this location has a trove of rich deposits, like high-grade zinc and copper. (MMG Ltd.)<\/p>\n

Hey acknowledges the hesitance about a foreign investor mining in Nunavut. But he said building mines is not easy or cheap \u2013 and MMG has the experience.<\/p>\n

\u201cWe bring investment, we bring expertise, we bring international standards, but the huge beneficiaries of that work are the communities, the employees, and the countries that host these resources,\u201d he said.<\/p>\n

In a written response, MMG Ltd. also says roughly 10 to 30 per cent of its total field program budget would be directed to Inuit contractors this coming year.<\/p>\n

WATCH | How can the mining industry benefit from the Arctic Security Corridor and Grays Bay?:\"\"<\/p>\n

How can the mining industry benefit from the Arctic Security Corridor and Grays Bay?<\/p>\n

The Arctic Economic Security Corridor and Grays Bay Road and Port are hot topics in the North right now. The projects would connect the N.W.T. and Nunavut to the Canadian highway system from the Arctic coast. But questions remain about the benefits the project will bring to the mining industry. The CBC\u2019s Mah Noor Mubarik has more.<\/p>\n

Glencore, the Swiss commodity and mining company which owns mining assets at Hackett River, says the port and road project would also unlock access to critical minerals for them.<\/p>\n

In 2024, mining, quarrying, and oil and gas extraction was estimated to have made up roughly a third of Nunavut\u2019s GDP,<\/a> according to data compiled by the Nunavut Bureau of Statistics.<\/p>\n

Gold and iron ore made up virtually all of the territory\u2019s exports that year<\/a>, according to Library of Parliament research. Most went to European markets, with Switzerland topping the list. <\/p>\n

\"manTroy Hey, MMG Ltd.’s executive general manager of corporate relations, says the company will be working with Inuit partners to ensure there is local involvement, as much as possible, in their mining activities. (Peter Casamento\/Casamento Photography)Negotiating fair royalties<\/p>\n

Most mining in Nunavut currently happens on Inuit-owned lands, so royalties are going to Inuit organizations.<\/p>\n

Revenue from future development on federal land will soon go to the Nunavut government once devolution comes into effect, although Premier John Main has previously said he doesn\u2019t anticipate many royalties immediately from that process.<\/p>\n

However, one economist doesn\u2019t believe Nunavut is getting the royalties it deserves. Silo Strategy\u2019s Erin Weir, a former MP for the federal NDP in Saskatchewan, has crunched the numbers by looking at publicly-available revenue reports.\u00a0<\/p>\n

\u201cWhat I found was that even adding together what mining companies pay to both Inuit organizations and to the territorial government, it amounts to no more than a nickel for every dollar of minerals,\u201d he said.<\/p>\n

For example in 2024, Weir said Agnico Eagle, the territory\u2019s second largest employer<\/a> according to IBIS World, only returned roughly $90 million in revenues to Inuit organizations and the territorial and federal governments \u2013 which is about 5.2 per cent of the company\u2019s profits.<\/p>\n

Weir doesn\u2019t believe Inuit organizations and the territorial government are negotiating a good return, especially with the price of gold increasing globally. He believes that could come down to a lack of coordination between Inuit organizations when negotiating royalties.<\/p>\n

\"manErin Weir, an economist with Silo Strategy Inc., believes Nunavut’s Inuit organizations could be negotiating better royalty deals with mining companies. (Erin Weir)<\/p>\n

\u201cI think there’s also a sense that it’s very expensive to build mines or to build anything in Nunavut, and there’s a lot of deference to the companies that have invested in the territory,\u201d he said.\u00a0<\/p>\n

Another way Weir believes the Nunavut government could get higher returns is through adjusting corporate and property taxes.<\/p>\n

In a statement to CBC News, Agnico Eagle says it\u2019s important to look at the complete set of data, which is primarily shaped by its Inuit Impact and Benefits Agreements. <\/p>\n

The company says in 2024, it spent $33 million in employee salaries and $895 million on Inuit business procurement \u2013 a figure that has risen to over $1 billion in 2025. It also points to other contributions, like with training and mentorship.<\/p>\n

Community benefits<\/p>\n

In Kugluktuk, the hamlet situated closest to the road and port project, MLA Simon Kuliktana isn\u2019t sure what the benefits will be for residents.<\/p>\n

He said he\u2019s seen Inuit beneficiaries working at some mines in the Kitikmeot region \u2013 though there are few in leadership roles.<\/p>\n

\u201cI would like to see more local entrepreneurs in the region \u2026 and how they can play a role in that,\u201d he said.\u00a0<\/p>\n

For the West Kitikmeot Resources Corp.\u2019s part, Brendan Bell believes there are a host of benefits that don’t necessarily come with a dollar figure, such as opportunities for training and having the capacity to welcome bigger ships for sealifts. <\/p>\n

Over the next year, Bell said the organization will begin discussions with its largest shareholder, the Kitikmeot Inuit Association, around a benefits package.\u00a0<\/p>\n

\u201cSome of that will certainly entail business opportunities, local business opportunities, and employment opportunities.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The Grays Bay Port and Road project in Nunavut promises to unlock the region’s mining potential, but questions…\n","protected":false},"author":2,"featured_media":650127,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[49,48,295,66],"class_list":["post-650126","post","type-post","status-publish","format-standard","has-post-thumbnail","category-environment","tag-ca","tag-canada","tag-environment","tag-science"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/650126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=650126"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/650126\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/650127"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=650126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=650126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=650126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}