Ministerial transition binder

Table of contents

A1: Cannor overview placemat

Mandate

to support the conditions for a sustainable, diversified and innovative economy in collaboration with Northerners and Indigenous peoples, businesses, organizations, other federal departments and other orders of government.

Core Responsibilities

  • Grants & Contribution Programs – Focused on economic development
  • Northern Projects Management Office (NPMO) – Federal coordination for resource development projects
  • Pilimmaksaivik – The Federal Centre of Excellence for Inuit Employment in Nunavut
  • Policy & Advocacy – Convener role with federal Departments and partners

Programs

Inclusive diversification and economic advancement in the north (IDEANorth): $18.2 M ongoing; $60 M over five years.

IDEANorth promotes economic diversification and growth through four streams: 

  • Stream 1: Foundational investments to advance economic growth and sector development.
  • Stream 2: Business scale-up, productivity, and support to business research and development.
  • Stream 3: Small-scale economic infrastructure development.
  • Stream 4: Advancing foundational economic infrastructure.

Northern aboriginal economic opportunities program (NAEOP): $10.8M ongoing.

  • Supports development for Indigenous communities and businesses.

Northern isolated community initiatives fund (NICI): $12.5 M over five years.

  • Supports community-led projects for local and Indigenous food production.

Northern adult basic education program* (NABEP): $4.5M.

  • Enhances literacy and workplace skills.

*Sunsets in 2019-20.

Pan-territorial growth strategy

Areas of action

Skilled workforce

Strengthen the northern workforce and equip Northerners with the tools, skills, and experience they need to succeed in the workforce, now and into the future.

Infrastructure

Leverage upcoming investments and the ongoing operation of major infrastructure projects to maximize local and regional economic opportunities.

Resource development

Support the sustainable development of the mining and energy sectors throughout the development cycle, in a manner which increases community capacity, maximizes jobs and wealth within the territories, and produces positive economic impacts in communities.

Innovation & diversification

Foster the sustainable growth of other economic sectors with a focus on strengthened entrepreneurship and northern innovation.

Planned spending
Description of Planned spending
  2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 and
Ongoing
Grants & Contributions 46,354,465 44,878,370 50,591,420 50,556,641 47,537,000 29,037,000
Operating 18,666,941 18,882,718 19,357,447 20,140,242 20,115,762 16,252,670
Total 65,021,406 63,761,088 69,948,867 70,696,883 67,652,762 45,289,670

Success stories

William Onah, junior geophysical technician, installing a capacitively coupled resistivity receiver for a field test at Walsh Lake.

Aurora geosciences geo-sensing innovation project – Yellowknife, Northwest Territories

A system that identifies new mineral deposits is improving exploration for mineral resources in the North. With support from CanNor, Aurora Geosciences Ltd (AGL), a Yellowknife-based exploration services company, re-engineered commercially available capacitively-coupled resistivity equipment to enable the equipment's signal to penetrate deeper into the ground.

The original system was pioneered by AGL and was recently used to discover diamond-bearing kimberlite rock at an exploration project in the Northwest Territories. Towed by snowmobile over frozen tundra, the improved technology will significantly reduce exploration costs in comparison to traditional ground resistivity surveys.

Dr. Trevor Bell and Inuit from Pond Inlet pose in front of a qamutik (sled) used to measure ice thickness as part of the Smart ICE program.

SmartICE Technology adaptation – Pond Inlet, Nunavut

Northern activities such as fisheries, shipping, tourism, and subsistence hunting depend on accurate sea ice information. However, the lack of real-time information can endanger those working and traveling on the ice. SmartICE uses sensors mounted on a qamutik (sled) to measure ice thickness. This information, combined with Inuit traditional knowledge, feeds into community-maintained maps to assist in planning safer travel.

CanNor funding supported SmartICE adapting technology for use in temperatures below –30 °C by hard wiring positioning and measuring sensors and includes insulation, heaters, and a simplified interface easily used with bulky gloves. Data will show how climate change is affecting the northern environment and how communities are adapting.

NorthLight innovation hub in Whitehorse, Yukon

NorthLight innovation – Whitehorse, Yukon

Northlight Innovation is a brand new 24,000 square foot facility located in Downtown Whitehorse managed and operated by local non-profit Yukonstruct. This facility is a gathering place for entrepreneurs and innovators, who have access to cutting edge manufacturing equipment, educational workshops, a collaborative co-working environment and business support services.

CanNor funding supports renovation and construction of interior displays, along with start-up costs for the first two years to build the capacity of the Society and implement the systems needed to enable future sustainability.

Northlight Innovation is a shared space between the YukonStruct Society, Yukon College, the Yukon Development Corporation, and other private businesses and not for profits. By bringing together players from across the innovation ecosystem, Northlight Innovation provides Yukoners a place to grow ideas into commercial products.

A2: Northern economic development – overview presentation

Government of Canada satellite decorated by local Indigenous artists (Inuvik, NWT)

Table of contents

Regional context

Canada's three territories are home to…

  • 0.3% of Canada's population (124,000), covering nearly 40% of the nation's landmass
  • A high proportion of Indigenous peoples, 53.3% of the population in the territories identified as Indigenous in 2016, versus 4.9% in Canada at large
  • A younger population than Canada as a whole; over 60% of the population is under the age of 40
  • Most of the territories are governed through modern treaties with Indigenous people
Population in the territories (2016)
Geography Population (2016)
Yukon 35,874
Northwest Territories 41,786
Nunavut 35,944
Percentage share of gdp by selected sectors
Description of Percentage share of gdp by selected sectors

Nearly half of the territories GDP is from the public service and the extractive industries (mining).

Public Sector 32%
Extractive Industries 17%
Construction 13%
Real Estate, Rental and Leasing 11%
Transportation and Warehousing 5%
Other 22%

Source: Statistics Canada. Table 36-10-0400-01 Gross domestic product (GDP) at basic prices, by industry, provinces and territories, percentage share

Federal collaboration for northern economic development

Through engagement with Northerners, CanNor developed a Pan-Territorial Growth Strategy focused on four key pillars where federal departments collaborate with territories and Indigenous partners to support northern economic development. These areas are:

Skilled workforce

Strengthen the northern workforce and equip Northerners with the tools, skills, and experience they need to succeed in the workforce, now and into the future.

Infrastructure investments and development

Leverage upcoming investments and the ongoing operation of major infrastructure projects to maximize local and regional economic opportunities.

Resource development

Support the sustainable development of the mining and energy sectors, throughout the development cycle, in a manner which increases community capacity, maximizes jobs and wealth within the territories, and produces positive economic impacts in communities.

Diversification and innovation

Foster the sustainable growth of other economic sectors with a focus on strengthened entrepreneurship and northern innovation.

Skilled workforce

Unemployment Rate
Description of Unemployment Rate

The chart represents the unemployment rate of the territories and canada from 2014 to 2018. The unemployment rate in the territories is higher by 3 to 4 percentage points but it is declining overall.

Unemployment Rate
  2014 2015 2016 2017 2018
Canada 6.90% 6.90% 7% 6.30% 6%
Territories 8.7% 10.2% 9.3% 8.3% 8.0%

Source: Statistics Canada. Table 14-10-0090-01 Labour force characteristics by province, territory and economic region, annual (x 1,000)

Labour market

  • The territories have a higher unemployment rate than the rest of Canada, though it has declined in recent years
  • Large unemployment gaps exist between Indigenous and non-Indigenous residents (e.g. Yukon – 22.3% versus 5.9%)
  • Higher unemployment rates exist outside of territorial capitals (e.g., Yellowknife 5.9%, rest of NWT 21.9%)

Skills

  • National Indigenous Economic Development Board estimated that Indigenous people in the territories could earn an additional $1.1 billion annually with the same education and training as non-Indigenous
  • Northern-based training and research has steadily increased through initiatives such as the Canadian High Arctic Research Station, Yukon University, and a Regional Training Centre for the Marine Conservation Area in the High Arctic
  • Conference Board of Canada expects 27% of jobs created in Nunavut mines to go to people living in the territory, compared to 70% of jobs in the service sector

Infrastructure investments and development

Primary Source of Community Energy
Description of Primary Source of Community Energy

Diesel continues to be a significant source of community energy across the three territories. Data is presented by the percentage of communities per type of energy.

Primary Source of Community Energy
Source of Energy Yukon Northwest Territories Nunavut
Diesel Generator 0.27 0.72  
Natural gas pipeline and diesel 0 0.06  
Regional hydro grid and diesel 0.73 0.22  

Source: Conference Board of Canada, 2014

Transportation

  • All Nunavut and several NWT communities are heavily reliant on marine transportation and / or aviation for access to diesel and goods (e.g., food, construction materials)
  • Degrading permafrost is having an impact on all-season and winter roads
  • Infrastructure investments have increased economic opportunities by (e.g.,137 km Inuvik-Tuktoyaktuk highway) connecting southern communities to the Arctic Ocean

Energy

  • Diesel continues to be the primary source of energy across the North, despite being more expensive and producing more GHGs than other sources
  • Clean and renewable energy such as biomass energy projects are helping to displace the use of diesel, reducing environmental impacts and improving socio-economic conditions

Broadband

  • Limited availability, lack of reliability and high cost of high-speed broadband create barriers to participation in the digital economy
  • Access to essential services are also limited (e.g., health care, education, public safety, banking)
  • Significant new developments are on the horizon such as Kivalliq Hydro-Fibre Link and the 1,700 km underwater fibre optic cable from Greenland to Nunanvut.

Resource development

Description of Canada's natural resource potential

Much of Canada's natural resource potential lies in northern, remote and isolated regions – but it is not being fully realized.

Key facts:

  • 40% of the land madd is above 60 degrees latitude.
  • This are contains only 12% of know deposits.
  • 76% of projects north of 60 degrees.
  • 61% of projects south of 60 degrees are undeveloped.
  • Mining sector is a primary driver of the northern economy (17% of GDP for territories)
  • 76% of the potential projects north of 60° are undeveloped
  • In 2018, the approximate value of mineral production in the North was $3.5 billion
  • Canada is a world class leader in mine remediation activities, creating economic opportunities such as those connected to Giant Mine in the Northwest Territories, and Faro Mine in Yukon
  • Significant amounts of unrealized oil and gas are estimated in the territories (e.g., 18.3 billion barrels of oil and 181.4 trillion cubic feet of natural gas resources in Nunavut alone)
  • High operating costs and an absence of critical transportation and energy infrastructure are barriers to resource development

Diversification and innovation

Tourism

Indigenous tourism's GDP contribution:

  • Nunavut – $133.8M
  • NWT – $102.9M
  • Yukon – $35.2M

Entrepreneurship

Growing in size, complexity – individual entrepreneurs, larger community owned businesses and various forms of social enterprise

3,500 SMEs in the territories

Diversification

  • Tourism is a growing sector but facilities and services are not consistently available to benefit from new opportunities (e.g., cruise ships)
  • There is an increasing focus on food production and systems to reduce reliance on imported foods and address food insecurity

Innovation

  • A strong entrepreneurial spirit exists in some areas and sectors
  • The mining industry is an essential part of the development of new technologies and is also a technologically advanced sector
  • The number of SMEs per capita is higher than the Canadian average of 39.2 – Yukon (57.3) and NWT (48.5)
  • Leveraging anchor institutions (e.g., the new Yukon University; the Canadian High Arctic Research Station), could help spur growth of the innovation ecosystem

CanNor role

The Agency headquarters is in Iqaluit (pictured above), with regional offices in Whitehorse and Yellowknife, as well as a liaison office in Ottawa.

Core Responsibility: Support the conditions for a sustainable, diversified and innovative economy in collaboration with Northerners/Indigenous people, businesses, organizations, other federal departments and other levels of government through:

  • Delivery of grants and contribution programs
  • Northern Projects Management Office (NPMO)
  • Policy and advocacy (Convener role with federal departments and partners)
  • Pilimmaksaivik (The Federal Centre of Excellence for Inuit Employment in Nunavut)
Departmental Planned Spending
Description of Departmental Planned Spending
  2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 and
Ongoing
Grants & Contributions 46,354,465 44,878,370 50,591,420 50,556,641 47,537,000 29,037,000
Operating 18,666,941 18,882,718 19,357,447 20,140,242 20,115,762 16,252,670
Total 65,021,406 63,761,088 69,948,867 70,696,883 67,652,762 45,289,670

Success stories

Smart ICE Technology Adaptation – Pond Inlet, Nunavut

William Onah, junior geophysical technician, installing a capacitively coupled resistivity receiver for a field test at Walsh Lake.

SmartICE uses sensors mounted on a qamutik (sled) to measure ice thickness. This information, combined with Inuit traditional knowledge, feeds into community-maintained maps to assist in planning safer travel.

CanNor funding supported SmartICE adapting technology for use in temperatures below –30°C by hard wiring positioning and measuring sensors and includes insulation, heaters, and a simplified interface easily used with bulky gloves. Data will show how climate change is affecting the northern environment and how communities are adapting.

Aurora Geosciences Geo-Sensing Innovation Project – Yellowknife, Northwest Territories

A system that identifies new mineral deposits is improving exploration for mineral resources in the North. With support from CanNor, Aurora Geosciences Ltd, a Yellowknife-based exploration services company, re-engineered commercially available capacitively-coupled resistivity equipment to enable the equipment's signal to penetrate deeper into the ground. Towed by snowmobile over frozen tundra, the improved technology will significantly reduce exploration costs in comparison to traditional ground resistivity surveys.

Northlight Innovation Hub – Whitehorse, Yukon

Northlight Innovation is a brand new 24,000 square foot facility located in Downtown Whitehorse managed and operated by local non-profit Yukonstruct Society. This facility is a gathering place for entrepreneurs and innovators, who have access to cutting edge manufacturing equipment, educational workshops, a collaborative co-working environment and business support services.

CanNor funding supports renovation and construction of interior displays, along with start-up costs for the first two years to build the capacity of the Society and implement the systems needed to enable future sustainability.

A3: Northern Economic Development – detailed report

Regional Context

Background

Canada's territories – Yukon, Northwest Territories, and Nunavut – are home to 124,000 people, just over half of whom are Indigenous, living across 40% of Canada's landmass. The territorial North has a diverse range of opportunities, often tied to its immense natural resources, the beauty of its landscapes, and the unique cultures of its residents.

While the resource sector remains a cornerstone of the northern economy, new opportunities for growth are emerging across a diverse range of sectors including tourism, food sectors, the knowledge economy and cultural and traditional sectors. With 60% of the population under the age of 40, the territories' youth, with the right educational and workplace supports, have tremendous potential to help implement transformative changes.

The North is disproportionately impacted by climate change as the Canadian Arctic is warming three times faster than the global average. As a result, this region is experiencing a range of environmental impacts including longer and more widespread sea-ice-free conditions, thawing permafrost, and changes in distributions of species. These impacts are increasing the risk of costly damage to infrastructure, changing traditional food sources, threatening transportation routes and affecting the social and cultural well-being of northern Indigenous peoples. Climate change is also creating new avenues for growth including expanded access to natural resources and increased tourism opportunities. In addition, the North could emerge as a world leader in mitigation/adaption and cold climate technologies, presenting new economic development opportunities.

Governance

Modern Treaties and Self-Government Agreement map in Canada. The majority of the territories are governed by modern treaties and self government agreements.

The twentieth and early twenty-first centuries have witnessed a strengthening of public government across the territories. With the devolution of federal authority to territorial governments, they have become more independent. Province-like powers over land and resources were devolved from the federal government to Yukon in 2003 and to the Northwest Territories in 2014. Negotiations with Nunavut over these authorities and responsibilities are ongoing, with an agreement-in-principle signed in the summer of 2019.

Most regions in the territorial North are governed by modern land claims – constitutionally protected treaties with Indigenous people involving the Indigenous, federal and territorial governments. Modern treaties are key tools for achieving reconciliation and establish renewed nation-to-nation, Inuit-Crown, government-to-government relationships based on respect, cooperation, partnership, and the recognition of rights.

Modern land claims include co-management governance provisions (federal, territorial, Indigenous) for lands and resource management, as well as for the overall environmental assessment (EA) of major projects.

Economic overview

Canada's territories offer vast potential for resource development, innovation, business development and economic growth. Progress in these areas contributes to a vibrant and inclusive northern economy which not only benefits Northerners, but all Canadians. Nevertheless, capacity and foundational infrastructure issues remain key challenges and barriers to economic development.

Solid growth ahead for the territories

(real GDP, all three territorial economies, percentage change*)

Description of Solid growth ahead for the territories

The data forecasts strong GDP growth in the territories.

Year Real GDP,
percentage change
2010 6.3
2011 -2.3
2012 1.4
2013 4.2
2014 2.1
2015 -1.6
2016 3.3
2017 5.3
2018f 4.6
2019f 5.3
2020f 4.5
2021f 1.3
2022f 5.4
2023f 1.5
2024f 2.1
2025f -2.8
f=forecast
*based on 2012
Sources: The Conference Board of Canada; Statistique Canada

As projected by the Conference Board of Canada, as a whole, the territorial economies are forecasted to have an average growth rate of 5.3% in 2019 and 4.4% in 2020 before averaging 1.5% per year between 2021 and 2025.

This overall growth is being driven in part by strong growth in Nunavut, and the Yukon while the Northwest Territories' outlook is modest by comparison.

Economic development and growth throughout the territories is challenging due to a sparse and widely distributed population, a significant infrastructure deficit, skills gaps, climate change, high energy, living and operational costs, and cyclical downturns associated with fluctuations in the levels of resource development activity. However, as CanNor embarks on its second decade, the focus on economic diversification continues to expand and includes increased linkages to the global economy and clean growth in the North. Working with Northerners to cultivate their strong entrepreneurial sprits to build a diversified, sustainable, and dynamic economy across the territories is a key component to fostering long-term sustainability and economic prosperity. This work includes advancing opportunities for meaningful inclusion of Indigenous peoples and businesses.

Percentage share of GDP by Selected Sectors
Description of Percentage share of gdp by selected sectors

Nearly half of the territories GDP is from the public service and the extractive industries (mining).

Public Sector 32%
Extractive Industries 17%
Construction 13%
Real Estate, Rental and Leasing 11%
Transportation and Warehousing 5%
Other 22%

Source: Statistics Canada. Table 36-10-0400-01 Gross domestic product (GDP) at basic prices, by industry, provinces and territories, percentage share

Federal collaboration for northern economic development

Through engagement with Northerners, CanNor developed a Pan-Territorial Growth Strategy focused on four key pillars where federal departments collaborate with territories and Indigenous partners to support northern economic development.

Prosperity of the North requires an integrated approach which not only strengthens the foundations of the economy – a skilled workforce and robust infrastructure including integral transportation systems – but also promotes growth through sector development and innovation. Progress in these areas contributes to a vibrant and inclusive northern economy which not only benefits northerners, but all Canadians.

Skilled workforce

Strengthen the northern workforce and equip Northerners with the tools, skills, and experience they need to succeed in the workforce, now and into the future.

Infrastructure investments and development

Leverage upcoming investments and the ongoing operation of major infrastructure projects to maximize local and regional economic opportunities.

Resource development

Support the sustainable development of the mining and energy sectors, throughout the development cycle, in a manner which increases community capacity, maximizes jobs and wealth within the territories, and produces positive economic impacts in communities.

Diversification and innovation

Foster the sustainable growth of other economic sectors with a focus on strengthened entrepreneurship and northern innovation.

There are 25 federal departments and agencies that provide programs, funding and policy development in the North. Collaboration amongst federal departments, territories and Indigenous groups on the four pillars will help to capitalize on the North's immense opportunities and fuel economic growth. This collaborative approach allows for the integration of economic, social, cultural, and environmental considerations.

Skilled workforce

Unemployment Rate
Description of Unemployment Rate

The chart represents the unemployment rate of the territories and canada from 2014 to 2018. The unemployment rate in the territories is higher by 3 to 4 percentage points but it is declining overall.

Unemployment Rate
  2014 2015 2016 2017 2018
Canada 6.90% 6.90% 7% 6.30% 6%
Territories 8.7% 10.2% 9.3% 8.3% 8.0%

Source: Statistics Canada. Table 14-10-0090-01 Labour force characteristics by province, territory and economic region, annual (x 1,000)

Ensuring a skilled workforce is a foundational component of promoting the economic development potential in the region.

The current skills gap within the North limits the ability of Northerners to take advantage of critical opportunities for economic growth. Barriers to increased participation in the workforce include: few training and post-secondary education programs and facilities in the North; limited access to affordable transportation; limited employment opportunities and services that enhance employment like daycare, particularly in smaller communities.

Labour market

The territories have a higher unemployment rate than the rest of Canada, although it is declining. There is a large unemployment rate gap between Indigenous and non-Indigenous residents in the territories. In 2016, the Indigenous unemployment rate in Yukon was 22.3% while the non-Indigenous rate was 5.9%. The unemployment rates outside the territorial capitals are also consistently higher than the average territorial rate. For example, in Yellowknife the unemployment rate was 5.9%, while the rest of the Northwest Territories was 21.9% (Census, 2016).

Skills

From 2011 to 2017, the population aged 25-64 without a completed secondary education decreased overall in the territories, but is still quite high. The Conference Board of Canada expects that only 27% of the jobs created in Nunavut mines between now and 2025 will go to people living in the territory, compared with 70% of jobs in the services sector. The National Indigenous Economic Development Board estimated that Indigenous people in the territories could earn an additional $1.1 billion in annual income if they had the same education and training as non-Indigenous people. Northern-based training and research has been steadily increased through initiatives such as the Canadian High Arctic Research Station, Yukon University, and a Regional Training Centre for the Marine Conservation Area in the High Arctic.

Infrastructure investments and development

Primary Source of Community Energy
Description of Primary Source of Community Energy

Diesel continues to be a significant source of community energy across the three territories. Data is presented by the percentage of communities per type of energy.

Primary Source of Community Energy
Source of Energy Yukon Northwest Territories Nunavut
Diesel Generator 27% 72% 100%
Natural gas pipeline and diesel 0% 6% 0%
Regional hydro grid and diesel 73% 22% 0%

Source: Conference Board of Canada, 2014

The infrastructure deficit is a foundational challenge to economic growth. The deficit is acute for transportation and telecommunications infrastructure. Only 1% of Canada's total road network can be found in the territories. There are a number of inherent challenges, such as climate and remoteness that lead to higher construction and maintenance costs and increased construction time in the North. In addition, climate change is threatening existing infrastructure as thawing permafrost directly impacts the integrity of building foundations, roads, runways, and pipelines.

Transportation

There are important differences in the levels of infrastructure in the territories. For example, all communities in Nunavut and several Northwest Territories communities rely exclusively on marine transportation and/or aviation for communities' diesel shipments, cargo for goods and travel between communities. In comparison, Yukon has a well-developed road network with access points to British Columbia and Alaska. Infrastructure investments have increased opportunities such as the 137 km Inuvik-Tuktoyaktuk highway connecting southern communities to the Arctic Ocean.

Energy

Diesel continues to be a significant source of energy at the community level across the territories, despite efforts to introduce clean energy technology. Diesel power is more expensive and produces more greenhouse gas emissions than grid-connected electricity and significantly raises the cost to households and industry. Clean and renewable energy like biomass energy projects are helping to displace the use of diesel, reducing environmental impacts and improving socio-economic conditions.

Broadband

Although significant new developments are on the horizon, the currently limited availability, lack of reliability, and high cost of high-speed broadband is a barrier to Northerners' participation in the digital economy, as well as to accessing essential services such as health care, education, government, public safety and banking.

Resource development

Canada's territories are home to an abundance of untapped natural resource potential. Natural resource exploration and development potential in the territories is also drawing global interest and investment. Barriers to capitalizing on this natural capital are often higher operation costs and an absence of critical transportation and energy infrastructure.

Resource industries

Description of Canada's natural resource potential

Much of Canada's natural resource potential lies in northern, remote and isolated regions – but it is not being fully realized.

Key facts:

  • 40% of the land madd is above 60 degrees latitude.
  • This are contains only 12% of know deposits.
  • 76% of projects north of 60 degrees.
  • 61% of projects south of 60 degrees are undeveloped.

The mining sector is the cornerstone of the northern economy and is a significant driver for territorial and Indigenous businesses (17% of GDP for the territories). Much of Canada's mineral resource potential lies in the territories; 76% of the potential projects north of 60° are undeveloped, including minerals used in the production of new technologies such as solar panels. The sector serves as the economic pillar across the territories. In 2018, the value of mineral production in the North was approximately $3.5 billion: $2,110 million in the Northwest Territories, $1,164 million in Nunavut, and $217 million in Yukon. Canada is a world class leader in mine remediation activities, creating economic opportunities such as those connected to the remediation of Giant Mine in the Northwest Territories and Faro Mine in Yukon.

Mineral exploration spending is a predictor of future growth and long-term interest in the region. The future of mining in each territory is quite different: revenues are set to decrease in the Northwest Territories as diamond mines wind down but mining is increasing in Nunavut as new gold mines open.

Northern Canada has large untapped resources of crude oil and natural gas. With modern technology, higher prices for oil and natural gas, and regulatory approval, the North could become a significant producer of petroleum. Current oil reserves are estimated at 18.3 billion barrels in Nunavut, 1.2 billion barrels in the Northwest Territories, 900 million barrels in Yukon. Natural gas resources are estimated at: 181.4 trillion cubic feet in Nunavut, 16.4 trillion cubic feet in the Northwest Territories, and 8 trillion cubic feet in Yukon.

Diversification and Innovation

With relatively small, dispersed populations and economic activity concentrated in a few sectors, diversifying the northern economy is important for the territories' long-term prosperity.

Diversification

Tourism is a growing sector across the North with significant opportunities for Indigenous tourism operators. The North's one-of-a-kind experiences can be located in smaller communities which need investments to enhance their facilities and services in order to be full-service tourism destinations. In the coming years, the North is expected to see an increase in the number of cruise ships.

There is strong desire and need to increase local food production and systems—agricultural goods, country foods such as seal, caribou and muskox, and fisheries—in order to reduce the North's reliance on imported foods, reduce food insecurity, and increase local employment and create vibrant export businesses.

The traditional economy (trapping, sealing, and arts and crafts) of the North is important for many Northerners in that these activities allow them to be self-employed, work on the land, continue cultural practices, and offer a source of income in small communities which have limited economic opportunities.

Innovation

Many areas within the North have a strong entrepreneurial spirit – Yukon (57.3) and the NWT (48.5) have more SMEs per capita than the Canadian average (39.2). The territories are looking to develop innovative technologies and sciences to enhance its economy. The mining industry is an essential part of the development of new technologies and is also a technologically advanced sector. Leveraging anchor institutions, like the Inuvik Satellite Station Facility, the new Yukon University and the Canadian High Arctic Research Station, could help spur the growth of the North's small innovation ecosystem.

CanNor – Our approach

Our core responsibility is to support the conditions for a sustainable, diversified and innovative economy in collaboration with Northerners/Indigenous people, businesses, organizations, other federal departments and other levels of governments.

We address economic development in the North through the:

  • Delivery of grants and contribution programs
  • Northern Projects Management Office
  • Policy and advocacy (convener role with federal Departments and partners)
  • Pilimmaksaivik (The Centre of Excellence for Inuit Employment in Nunavut)
Departmental Planned Spending
Description of Departmental Planned Spending
  2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 and
Ongoing
Grants & Contributions 46,354,465 44,878,370 50,591,420 50,556,641 47,537,000 29,037,000
Operating 18,666,941 18,882,718 19,357,447 20,140,242 20,115,762 16,252,670
Total 65,021,406 63,761,088 69,948,867 70,696,883 67,652,762 45,289,670

Operations

CanNor's grants and contributions programs provide funding to support the development of key economic sectors such as community and business development, mining, tourism, fisheries, cultural industries.

By conducting outreach and pathfinding activities, through offices in each territory, CanNor enhances its support to clients as they navigate the economic development services and programs available to assist them. The Agency also proactively seeks out and leverages alternative funding sources from across government, and refer and connect clients seeking access to other funding options.

Key grants & contributions programs

Cannor-Specific Programs
  • Inclusive Diversification and Economic Advancement in the North (IDEANorth): $18.2M per year ongoing; $60M over five years.

    IDEANorth promotes economic diversification and growth through four streams:
    • Stream 1: Foundational investments to advance economic growth and sector development.
    • Stream 2: Business scale-up, productivity, and support to business research and development.
    • Stream 3: Small-scale economic infrastructure development.
    • Stream 4: Advancing foundational economic infrastructure.
  • Northern Aboriginal Economic Opportunities Program (NAEOP):
    Supports development for Indigenous communities and businesses.
    $10.8M per year ongoing.
  • Northern Isolated Community Initiatives Fund (NICI):
    Supports community-led projects for local and Indigenous food production.
    $12.5M over five years.
  • Northern Adult Basic Education Program* (NABEP):
    Enhances literacy and workplace skills.
    $4.5M; *sunsets in 2019-20.

Through its Grants and Contributions Programs, CanNor has adopted an increased focus on businesses and has recently introduced repayable contributions.

National Programs
  • Canadian Experiences Fund (CEF): Helps Canada's tourism sector innovate and grow.
    $5.3M over two years.
  • Regional Economic Growth Through Innovation (REGI): Supports the development of regional innovation ecosystems and business scale-up.
    $2.1M over five years.
  • Women Entrepreneurship Fund (WES): Supports women-led businesses.
    $2.7M over five years.

Northern Projects Management Office (NPMO)

NPMO was established in 2010 to improve the coordination of federal regulatory departments during the federal environmental review process for proposed resource development and infrastructure projects in the territories.

Large resource development and infrastructure projects are primary drivers of the northern economy, creating employment and business opportunities, and generating tax revenues that benefit Northerners and all Canadians.

NPMO's functions include:

  • enhancing pathfinding role for businesses investing in this sector;
  • coordinating federal departments' participation in territorial environmental review processes through the Northern Projects Management Office;
  • providing issues management in relation to the regulatory processes for Indigenous organizations and industry proponents; and
  • overseeing and coordinating Crown consultations in relation to major projects.

Policy & Advocacy

CanNor provides strategic and program policy advice with regard to economic development, diversification, and opportunities in the North. It also champions the economic interests of the North within and outside government, while providing an evidence-based Northern lens to contribute to overall federal policy and decision making.

In fulfilling these roles, CanNor:

  • represents Northern voices in federal development process and in international fora;
  • convenes federal departments and partners in northern and southern Canada to respond to economic challenges and opportunities in the North
  • conducts research and program evaluations to support the development of evidence-based policies; and
  • develops advice to the Minister, and delivers reports to Parliament.

CanNor's policy development is informed by its sectoral research and analysis, close working relationships with key stakeholders and other government departments, and CanNor's own work in the North.

Pilimmaksaivik (Federal Centre of Excellence for Inuit Employment in Nunavut)

Pilimmaksaivik – an Inuktitut term chosen by federal Inuit employees, meaning 'a place to develop skills through observations, mentoring, practice, and effort' – was established in May 2016 as a response to the Government of Canada's commitment (under Article 23 of the Nunavut Agreement) to employ Inuit within Nunavut at a level commensurate with their demographic representation.

CanNor operates Pilimmaksaivik on behalf of eleven Government of Canada departments and agencies with legal obligations. Based in Iqaluit with reach across Nunavut, Pilimmaksaivik is a one-window, whole-of-government service centre that is culturally sensitive and provides excellence in recruitment, employment, development, and retention of Nunavut Land Claim beneficiaries.

Example projects – success stories

Aurora Geosciences Geo-Sensing Innovation Project – Yellowknife, NWT

William Onah, junior geophysical technician, installing a capacitively coupled resistivity receiver for a field test at Walsh Lake.

A system that identifies new mineral deposits is improving exploration for mineral resources in the North. With support from CanNor, Aurora Geosciences Ltd (AGL), a Yellowknife-based exploration services company, re-engineered commercially available capacitively-coupled resistivity equipment to enable the equipment's signal to penetrate deeper into the ground.

The original system was pioneered by AGL and was recently used to discover diamond-bearing kimberlite rock at an exploration project in the Northwest Territories. Towed by snowmobile over frozen tundra, the improved technology will significantly reduce exploration costs in comparison to traditional ground resistivity surveys.

Smart ICE Technology Adaptation – Pond Inlet, Nunavut

Dr. Trevor Bell and Inuit from Pond Inlet pose in front of a qamutik (sled) used to measure ice thickness as part of the Smart ICE program.

Northern activities such as fisheries, shipping, tourism, and subsistence hunting depend on accurate sea ice information. However, the lack of real-time information can endanger those working and traveling on the ice. SmartICE uses sensors mounted on a qamutik (sled) to measure ice thickness. This information, combined with Inuit traditional knowledge, feeds into community-maintained maps to assist in planning safer travel.

CanNor funding supported SmartICE adapting technology for use in temperatures below –30°C by hard wiring positioning and measuring sensors and includes insulation, heaters, and a simplified interface easily used with bulky gloves. Data will show how climate change is affecting the northern environment and how communities are adapting.

Northlight Innovation Hub – Whitehorse, Yukon

Northlight Innovation building in Whitehorse, Yukon

Northlight Innovation is a brand new 24,000 square foot facility located in downtown Whitehorse managed and operated by local non-profit Yukonstruct. This facility is a gathering place for entrepreneurs and innovators, who have access to cutting edge manufacturing equipment, educational workshops, a collaborative co-working environment and business support services.

CanNor funding supports renovation and construction of interior displays, along with start-up costs for the first two years to build the capacity of the Society and implement the systems needed to enable future sustainability.

Northlight Innovation is a shared space between the YukonStruct Society, Yukon College, the Yukon Development Corporation, and other private businesses and not for profits. By bringing together players from across the innovation ecosystem, Northlight Innovation provides Yukoners a place to grow ideas into commercial products.

A4: Overview of CanNor grants and contributions programs (Vote 5)

Description of CanNor grants and contributions programs

CanNor's grants and contribution programs in relation to its Pan-Territorial Growth Strategy Areas of Action. CanNor specific programs have a larger impact on its areas of action than CanNor's national programs.

Diversification & Innovation: Innovative Diversification and Economic Advancement of the North; Northern Isolated Communities Initiative; Certification and Market Access for Seals; Canadian Experiences Fund; Regional Economic Growth through Innovation; and Economic Diversification Initiative.

Skilled workforce: Innovative Diversification and Economic Advancement of the North; Northern Aboriginal Economic Opportunities Program; Northern Adult Basic Education Program; Construction of Regional Training Centre in Pond Inlet; and Women Entrepreneurship Strategy.

Infrastructure investments: Innovative Diversification and Economic Advancement of the North; Northern Aboriginal Economic Opportunities Program; Northern Adult Basic Education Program; Construction of Regional Training Centre in Pond Inlet; and Canadian Experiences Fund.

Natural resources: Innovative Diversification and Economic Advancement of the North; Northern Aboriginal Economic Opportunities Program.

A5: Federal presence in the north

Programs and policy areas
Description of Programs and policy areas

Federal presence in the North broken down under eight subject areas and four to six sub areas. Each sub area identifies the federal departments involved.

Economic Development: Infrastructure & Transport (Infrastructure Canada; Transport Canada; Fisheries and Oceans Canada; Innovation, Science and Economic Development Canada; Canada Mortgage and Housing Corporation, Indigenous Services Canada, Parks Canada); Sustainable Resource Development (Natural Resources Canada; Environment Canada and Climate Change; Parks Canada; Fisheries and Oceans Canada); Labour Market & Skills (Regional Development Agencies; Employment and Social Development Canada); Innovation & Diversification (Regional Development Agencies; Innovation, Science and Economic Development; Natural Resources Canada)

Governance: Devolution (Crown-Indigenous Relations and Northern Affairs Canada; Indigenous Services Canada); Federal, Provincial, Territorial and Indigenous Mechanisms (Crown-Indigenous Relations and Northern Affairs Canada; Indigenous Services Canada; Transport Canada; Infrastructure Canada); Modern Treaties (Crown-Indigenous Relations and Northern Affairs Canada; Indigenous Services Canada; Parks Canada); Northern Federal Council (Canadian Northern Economic Development Agency); Inuit-Crown Partnership Committee (Crown-Indigenous Relations and Northern Affairs Canada)

Social: Physical and Mental Health (Indigenous Services Canada, Health Canada, Parks Canada); Education, Culture, & Languages (Crown-Indigenous Relations and Northern Affairs Canada; Indigenous Services Canada, Health Canada; Employment and Social Development Canada), Food Security (Crown-Indigenous Relations and Northern Affairs Canada; Agriculture and Agri-Food Canada; Canadian Northern Economic Development Agency; Indigenous Services Canada), Income Equality (Women and Gender Equality Canada; ESDC); Childcare (Indigenous Services Canada; Employment and Social Development Canada)

Indigenous Lens: Truth and Reconciliation Commission of Canada (Crown-Indigenous Relations and Northern Affairs Canada; Parks Canada), Murdered and Missing Indigenous Women and Girls (Crown-Indigenous Relations and Northern Affairs Canada); United Nations Declaration on the Rights of Indigenous Peoples (Crown-Indigenous Relations and Northern Affairs Canada, Global Affairs Canada, Justice Canada, Parks Canada), Jordan's Principle and Child First Initiative (Indigenous Services Canada)

Scientific & Traditional Knowledge: Co-generation of knowledge (Crown-Indigenous Relations and Northern Affairs Canada; Polar Knowledge Canada; Environment Canada and Climate Change; Natural Resources Canada; Indigenous Services Canada; Parks Canada), Cold Climate Research (Polar Knowledge Canada; Employment Canada and Climate Change; Natural Resources Canada; Justice Canada; Parks Canada), Agriculture & Country Food Harvesting (Agriculture and Agri-Food Canada, Crown-Indigenous Relations and Northern Affairs Canada); Canadian Rangers & Junior Rangers (Department of Nation Defense), All Domain Situational Awareness (Department of Nation Defense)

Environment & Climate Change: Ecosystems (Environment Canada and Climate Change; Natural Resources Canada; Polar Knowledge Canada; Crown-Indigenous Relations and Northern Affairs Canada; Justice Canada; Parks Canada), Protected Areas (Parks Canada, Environment Canada and Climate Change; Justice Canada; Transport Canada), Assessment Regimes (Environment Canada and Climate Change; Natural Resources Canada; Crown-Indigenous Relations and Northern Affairs Canada); Sustainable Energy & Clean Tech (Natural Resources Canada; Environment Canada and Climate Change; Canadian Northern Economic Development Agency)

Safety & Security: Sovereignty (Global Affairs Canada; Department of National Defense), Search & Rescue (Department of National Defense; Canadian Coast Guard; Transport Canada), National Defence (Department of National Defense), Justice (Justice Canada, Royal Canadian Military Police; Public Safety; Canada Boarder Services Agency); Northern Border (Canada Boarder Services Agency; Public Safety), NORAD Modernization (Department of National Defense; Global Affairs Canada)

International Lens: Arctic Council (Global Affairs Canada; Crown-Indigenous Relations and Northern Affairs Canada; Environment Canada and Climate Change; Fisheries and Oceans Canada; Transport Canada; Polar Knowledge Canada), Paris Accord and Treaty (Environment Canada and Climate Change; Global Affairs Canada), Sustainable Development Goals (Environment Canada and Climate Change; Global Affairs Canada), International Trade & Mobility (Global Affairs Canada, Canada Boarder Services Agency)

B1: Office locations

CanNor office locations

Headquarters & Nunavut Region
Allavvik Building, Second floor, 1106 Inuksugait Plaza
P.O. Box 40
Iqaluit, Nunavut X0A 0H0

Northwest Territories Region
Nova Plaza, Third Floor, 5019 52nd Street
P.O. Box 1500
Yellowknife, Northwest Territories X1A 2R3

Yukon Region
Suite 400-300 Main Street
Whitehorse, Yukon Y1A 2B5

Ottawa Liaison Office
Third floor, 90 Sparks Street
Ottawa, Ontario K1P 5B4

Federal ministers' regional offices in the territories

Iqaluit
Qamutiq Centre, Fourth Floor, 630 Queen Elizabeth II Way
PO Box 1479
Iqaluit, NU X0A 0H0
Tel: 867 975-4752

Yellowknife
Northwest Tower, Suite 1100-5201 50th Avenue
Yellowknife, NT X1A 3S9
Tel: 867-669-2800

Whitehorse
Suite 305-4109 Fourth Avenue
Whitehorse, YT Y1A 1H6
Tel: 867-456-6260

B2: Organizational chart

Description of CanNor's organizational chart

CanNor's organizational chart

President (Deputy Minister)
Iqaluit & Ottawa
Paula Isaak

VP, Policy, Planning, Communications & NPMO
Ottawa

DG, Operations
Iqaluit

Director, Pilimmaksaivik
Iqaluit

Director,
Corporate Services & CFO
Ottawa

DG, Northern Projects Management Office
Yellowknife

DG, Policy and Planning
Ottawa

Director,
Communications
Ottawa

Regional Director
Whitehorse

Regional Director
Yellowknife

Regional Director
Iqaluit

Director,
Strategic Policy
Ottawa

B3: Key contacts

Territorial Counterparts:

Government of Nunavut
David Akeeagok – Minister of Economic Development and Transportation
Phone: (867) 975-5026
dakeeagok@gov.nu.ca

Government of the Northwest Territories
Katrina Nockleby – Minister of Industry, Tourism and Investment
Phone: (867) 767-9141 ext. 11138 
Katrinanokleby@gov.nt.ca

Government of Yukon
Ranj Pillai – Minister of Economic Development
Phone: (867) 393-7418
ranjpillai@gov.yk.ca

Territorial Indigenous Organizations

(The following list represents Indigenous organizations that represent the majority of Indigenous peoples in the territories. Please note this is not an exhaustive list)

Nunavut
Nunavut Tunngavik Incorporated
Aluki Kotierk, President
Phone: (867) 975-4900
president@tunngavik.com

Kivalliq Inuit Association
David Ningeongan, President
Phone: (867) 645-5725
dningeongan@kivalliqinuit.ca

Kitikmeot Inuit Association
Stanley Anablak, President
Phone: (867) 983-2458
president@kitia.ca

Qikiqtani Inuit Association
PJ Akeeagok, President
Phone: (867) 975-8400
Email: pakeeagok@qia.ca

Northwest Territories
Inuvialuit Regional Corporation
Duane Smith, Chair
Phone: (867) 777-7000
dsmith@inuvialuit.com

Sahtu Secretariat Incorporated
Charles McNeely, Chair
Phone: (867) 589-4719
info@sahtu.ca

Akaitcho Territory Government
Annie Boucher, Executive Director
Phone: (867) 394-3313
at_govt@northwestel.net

Tlicho Government
George Mackenzie, Grand Chief
Phone: (867) 392-6381 (Ext. 1302)
georgemackenzie@tlicho.com

Gwich'in Tribal Council
Bobbie Jo Greenland-Morgan, President
Phone: (867) 777-7900
greenland.morgan@gwichin.nt.ca

Northwest Territory Métis Nation
Garry Bailey, President
Phone: (867) 872-2770
email not available

Deh Cho First Nations
Gladys Norwegian, Grand Chief
Phone: (867) 695-2355 (Ext. 224)
gladys_norwegian@dehcho.org

Yukon
Council of Yukon First Nations
Peter Johnston, Grand Chief
Phone: (867) 393-9200 (Ext. 9224)
peter.johnston@cyfn.net

Inuit Nunangat
Inuit Tapiriit Kanatami
Natan Obed, President
Phone: (613) 238-8181 (Ext. 224)
email not available

B4: Northern maps

Map of Canada's Territories
Map of Canada's Territories

Modern Treaties and Self-Government Agreements in the Territories

The territories have a majority of settled land claims, except for the Deh Cho region in the southern area of the NWT, and some areas of the Yukon which are still being negotiated.

The majority of the territories are governed by modern treaties and self government agreements.

C1: Statistical overview

 
Yukon
Northwest Territories
Nunavut
 
Territory
Area (sq km) 482,443 1,346,106 2,093,190 The total area of Canada is 9,984,670 sq km; Source: NRCan, Atlas of Canada
Percentage of Canada's Landmass 4.8% 13.5% 21% The Territories make up 39.3% of Canada's land mass; Source: NRCan, Atlas of Canada
Territorial Capital Whitehorse Yellowknife Iqaluit  
Number of Communities 17 33 26  
Number of Communities Not Connected by Road Year-Round 1 18* 26 * (4 air/marine only and 11 winter roads)
Airports 29 27 26  
Railways (km) 148 121 0  
Demographics
Estimated Total Population (2019) 40,854 44,826 38,780 Source: Statistics Canada, Population estimates as of July 1st 2019
Projected Population in 2023 (Low Growth Scenario) 42,200 45,500 40,400 Source: Statistics Canada, Population Projections for Canada (2018 to 2068), Provinces and Territories (2018 to 2043)
Projected Population in 2043 (Low Growth Scenario) 44,800 44,700 47,100 Source: Statistics Canada, Population Projections for Canada (2018 to 2068), Provinces and Territories (2018 to 2043)
Median Age of Population (2016) 39.5 34.0 25.1 Canadian median is 41.2; Source: Statistics Canada, Census 2016
% of Population Under 15 years 17.5% 21.2% 32.5% Canadian average is 16.6%; Source: Statistics Canada, Census 2016
% of Population Over 65 years 11.9% 7.7% 3.8% Canadian average is 16.9%; Source: Statistics Canada, Census 2016
Population of Capital (2016) 21,732 19,569 7,740 Source: Statistics Canada, Census 2016
% of Total Population living in Capital 60.6% 46.8% 21.5% Source: Statistics Canada, Census 2016
Aboriginal Population (2016) (as % of territorial pop.) 8,195 (23.3%) 20,860 (50.7%) 30,550 (85.9%) Source: Statistics Canada, Census 2016
Number of Aboriginal Languages 8 11 2  
# of Interprovincial Migrants Entering in Q2 of 2019 (compared to 2018 Q2) 0 (25) 49 (0) 53 (176) Source: Statistics Canada, Quarterly Interprovincial Migration
# of Immigrants to Territory from Outside of Canada (2015-16) 250 250 50 Source: Statistics Canada, Census 2016
Governance
Premier
Sandy
Silver
Caroline
Cochrane
Joe
Savikataaq
 
Date Became Premier November 2016 October 2019 November 2017  
Date of Next Election November 2021 2024 2022  
System of Government Party Politics* Consensus Consensus * Liberal Party; Yukon Party; NDP
Size of Legislative Assembly 18 19 22  
Size of Cabinet 7 6 8  
Number of Settled/Unsettled Land Claims* 11 settled
3 unsettled
5 settled
7 unsettled
1 settled *Does not include overlaps
Number of Self-Governing Aboriginal Groups 11 2 N/A  

C2: Territorial economic overview

Nunavut

Opportunities

  • Strength of the mining sector will lead economic growth in the short and medium term
  • Large youth population has the potential to meet future labour force needs
  • Growing tourism sector resulting from increase of cruise-ship visits

Challenges

  • Limited infrastructure, such as lack of road transportation and broadband less than 50Mbps download speed, is increasing the cost of living and doing business
  • High unemployment rates, especially outside the territorial capital
  • New jobs created in Nunavut's mining industry will primarily go to non-residents due to the shortage of specific mining skills in the resident population

Strategic CanNor investments

  • Skills development: A Regional Training Centre ($10M) in Pond Inlet will be constructed to support the development of a conservation economy in Qikiqtani region.
  • Infrastructure: The Kivalliq Inuit Association is undertaking the technical and feasibility study ($1.6M) on the potential to develop a hydroelectric and fibre-optic link between the province of Manitoba and the Kivalliq region of Nunavut.
  • Resource development: The Canada-Nunavut Geoscience Office will conduct new geoscience research ($3.3M) related to natural development, infrastructure, climate and permafrost change.
  • Diversification and innovation: The Government of Nunavut will undertake a project ($2.5M) to conduct fisheries research and to increase community capacity to advance Nunavut's fisheries sector.

Northwest Territories

Opportunities

  • Development of the Taltson Hydroelectric Corridor spurring new mining projects in the Slave Geological Province
  • Inuvik-Tuktoyaktuk all season highway connecting to the Arctic Ocean (increasing tourism opportunities)
  • New metal mines opening (Canadian Zinc's 2020)

Challenges

  • Long-term economic outlook is slumping due to reduced diamond mine production (e.g., majority of the production to slow by 2030)
  • Shrinking labour force due to outmigration and aging population
  • Climate change affecting seasonal roads needed for mining (i.e., unstable ice road seasons)

Strategic CanNor investments

  • Skills development: The Nunavut Fisheries and Marine Training Consortium, a company which provides training in marine industry in Nunavut, NWT and Nunavik, is expanding and enhancing its training facility ($800,000) in Hay River.
  • Infrastructure: The GNWT is conducting feasibility and engineering study work for the Taltson Hydroelectric Expansion Project ($480,000), delivering 60 megawatts of clean energy to the North Slave hydroelectric system.
  • Resource development: CanNor is supporting the Slave Geological Province Geoscience Exploration Development Initiative ($2.4M) to identify new mineral resources in the region.
  • Diversification and innovation: Northwest Territories Tourism is undertaking a project ($1.6M) for tourism marketing activities in targeted markets, conducting market research and adopting enhanced web-based tools.

Yukon

Opportunities

  • Tourism is a growing industry with partnership potential
  • Well-developed road network with access points to British Columbia, Alaska and an all-season highway which crosses the Arctic Circle
  • Forecasted unemployment rate below 4% with strong wage growth
  • Real mineral production is expected to increase by 81% in 2020 due to the Eagle Gold Project. Other mines are also on the horizon, driving growth long term.

Challenges

  • Labour shortage due in part to an aging population
  • Limited access to larger capital markets compared to provinces

Strategic CanNor investments

  • Skills development: Na-Cho Nyäk Dun Development Corporation is developing a project ($230,000) to support seed collection, germination trials and training/capacity development for mine reclamation.
  • Infrastructure: Carcross Tagish Management Corporation is building a manufacturing facility ($1M) to construct pre-fabricated residential unities for the Yukon market.
  • Resource development: Yukon Geological Survey is embarking on a project ($750,000) to support geothermal research, public data systems, community awareness activities and geophysical data processing.
  • Diversification and innovation:
    • Yukon College is developing a Cold Climate Innovation Centre Building ($1.7M) to support the research, prototype development and pilot testing of innovation and clean technology projects by small Yukon start-ups and entrepreneurs.
    • The YuKonstruct Makerspace Society created the Yukon Innovation Hub ($1M). This Hub represents the first innovation cluster north of 60.

C3: Pan-Territorial Growth Strategy

C4: Arctic and Northern Policy Framework

D1: Expression of Interest (EOI) flow chart for 2020-2021

CanNor proposes to issue an expression of interest for single or multi-year projects, which will be assessed based on targeted priorities. Timelines are approximate and subject to change.

Description of a timeline of CanNor's Expression Of Interest (EOI)

A timeline of CanNor's Expression Of Interest (EOI) process and a list of potential CanNor funding programs for applications.

Targeted EOI launch: mid December 2019 to early January 2020

EOI closed: mid February 2020

EOI Assessment: mid February 2020 to mid March 2020

Invitation to submit full proposal: mid March 2020

Full application received: mid April 2020

Full application assessed & 1st package to minister: mid May 2020

Redacted

D3: Northern major projects

CanNor is coordinating the federal participation and retains the Crown Consultation Record through its Northern Projects Management Office for the following major projects which are currently going through environmental assessment processes. Although decision-making authority rests with other Ministers, the Minister responsible for CanNor may be asked to speak to the completeness of the Crown Consultation Record. In addition, project proponents and/or other interested stakeholders may seek meetings.

Mary River Mine Project: Phase 2 Development Proposal

  • Baffinland Iron Ore Mines Limited is seeking approval by Responsible Ministers to expand production of iron ore at the Mary River mine on northern Baffin Island located 160 kilometres southwest of Pond Inlet, Nunavut.
  • The Phase 2 proposal includes additional production, construction of new infrastructure at Milne Inlet including a rail line and an extended shipping season.
  • A hearing took place on November 2-6, 2019, before the Nunavut Impact Review Board (NIRB). Due to significant concerns from the closest impacted community of Pond Inlet and the Qikiqtani Inuit Association, the public hearing was suspended for a period of time to be determined by the NIRB.
  • Unresolved concerns related to impacts on marine and terrestrial wildlife; the rail alignment, incorporation of Inuit Qaujimajatuqangit (Inuit traditional knowledge); impacts to traditional harvesting rights; and food security were discussed during the Hearing.
  • The Minister of Northern Affairs will make the decision. Other Responsible Ministers include: Fisheries & Oceans Canada, the Canadian Coast Guard; Natural Resources Canada; Transport Canada; and Environment and Climate Change Canada.
  • It is unknown how this pause in the process will affect the operations of the Mary River project. Layoffs of contractors have begun including of Inuit. Baffinland may seek an extension to a temporary increase in shipping, pending a final decision by the NIRB.

Whale Tail Pit Expansion

  • Agnico Eagle Mines (AEM) Ltd. operates the Meadowbank Gold Mine in the Kivalliq region of Nunavut, 110 km north of Baker Lake.
  • The Project seeks to expand the size of the previously approved Whale Tail open pit; develop an additional open pit and associated Waste Rock Storage Facility; and undertake underground mining.
  • NIRB released its Reconsideration Report and Recommendations for AEM's Whale Tail Pit Expansion proposal on Friday October 22, 2019 with new and amended terms and conditions.
  • The project has general support from the community of Baker Lake including the local Hunters and Trappers Organization and the Kivalliq Inuit Association.
  • The Minister of Northern Affairs has until early January 18, 2020 to make a decision on the proposed expansion.

Diavik Diamond Mines

  • The Mackenzie Valley Environmental Impact Review Board (MVEIRB) is conducting an environmental assessment on Diavik Diamond's Mines Inc.'s (DDMI) request to put processed kimberlite into mine pits. This application is a precursor to final closure and reclamation of the mine in 2024.
  • The Department of Fisheries and Oceans will be a Responsible Minister for this project due to responsibilities for fisheries protection under federal legislation. The Minister of Northern Affairs will be consolidating federal ministers' input into the environmental assessment process. The Government of the Northwest Territories' Minister of Lands will sign the final decision letter responding to the MVEIRB's recommendations.
  • The Review Board has not indicated a specific date when they will release the Final Report of Environmental Assessment. The final report is anticipated to be released 60-days after the close of public record on October 18, 2019.
  • Responsible Ministers have a legislated timeline of five months to make a decision regarding the Report of Environmental Assessment. A decision is anticipated by May 2020.

D4: Reports and submissions for tabling

2018-2019 Departmental Results Report

  • As Minister, you are required to approve CanNor's annual Departmental Results Report (DRR) to Parliament.
  • DRRs inform parliamentarians and Canadians of the results achieved by government organizations for Canadians. DRRs are individual department and agency accounts of performance for the most recently completed fiscal year, against the plans, priorities and expected results set out in their respective Department Plan.
  • DRRs are tabled in Parliament by the President of the Treasury Board on behalf of Ministers, usually during the fall sitting of Parliament. The tabling date has not yet been set by the Treasury Board Secretariat.

2018-2019 Annual Reports: Access to Information Act and Privacy Act

  • The Access to Information Act and the Privacy Act require the head of every federal government institution to submit annual reports to Parliament on the administration of these Acts. These reports describe how an individual department or agency fulfilled its responsibilities under both acts for the fiscal year 2018-2019. Their content is largely determined by guidelines prepared by the Treasury Board Secretariat and includes the requirements for statistical reports.
  • These reports will need to be tabled within each House of Parliament within the first 15 sitting days after September 1, 2019.

Access to ongoing funding for the Inclusive Diversification and Economic Advancement in the North (IDEANorth) initiative

  • Budget 2018 provided CanNor with ongoing funding ($20,000,000 per year) to deliver IDEANorth.
  • CanNor is required, in December 2019, to seek the financial authorities required to access funding for subsequent years.

D5: Potential events for ministerial attendance

This list highlights some key northern events up to March 31, 2020.

ArcticNet Annual Scientific Meeting

  • December 2-5, 2019: Halifax, Nova Scotia (https://arcticnetmeetings.ca/index.php?url=14210)
  • ArcticNet is a Network of Centres of Excellence of Canada that brings together scientists and managers in the natural, human health and social sciences with their partners from Inuit organizations, northern communities, federal and provincial agencies and the private sector to study the impacts of climate change in the coastal Canadian Arctic.
  • This year's conference topics relate to several of CanNor's priorities including sustainable development, as well as food and energy security.

Association for Mineral Exploration (AME) Roundup Conference

  • January 20-23, 2020: Vancouver, British Columbia
  • AME's conference brings together more than 6,500 people annually to share innovative ideas, generate new connections and create collaborative solutions related to mineral exploration and development. This event attracts representatives from the northern mining sector.

Northern Lights Tradeshow and Conference

  • February 5-8, 2020: Ottawa, Ontario (https://www.northernlights.events/)
  • Northern Lights Tradeshow and Conference is a biannual high-profile business and cultural showcase of Nunavut, Nunavik, and Labrador / Nunatsiavut. The event is expected to attract 200 exhibitors and 1,200 delegates. Past plenary speakers have included territorial premiers and federal ministers.
  • Many of this year's conference topics relate to several of CanNor's priorities including tourism development, community-led innovation, northern resource development, food and energy security.

Kitikmeot Trade Show

  • February 11-13, 2020: Cambridge Bay, Nunavut (https://kitikmeottradeshow.ca/)
  • The focus of the trade show is the exchange of information between professionals from business, industry and government sectors, as well as regulatory agencies and Inuit organizations. Event activities are designed to provide opportunities to expand inter-region trade and economic activity.

Prospectors & Developers Association of Canada (PDAC)

  • March 1-4, 2020: Toronto, Ontario (https://www.pdac.ca/home)
  • With over 25,800 attendees from 132 countries, PDAC provides opportunities to network with the global mineral exploration and mining community. It is also attended by over 2500 investors and offers diverse presentations with nearly 800 speakers. This event attracts representatives from the northern mining sector.

Redacted

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