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Thank you for the opportunity to speak – and congratulations to the organizers for putting together another successful edition of this long running conference.

We have come a long way since Meet the North was first originated in part to introduce the north and its potential to potential investors in southern Canada.

The fact was brought home to our Premier last month in China.  In meeting after meeting, he says he was impressed by the level of awareness to the North and to our investment potential.

We have long known that China offers excellent potential as the next growth market for our tourism industry. But today we are also recognizing strong interest in our oil and gas potential, our mineral resources – and especially our wild fur industry.

The potential for investment and resource development in the Northwest Territories continues to grow exponentially.
 

Slide 2

What began in the late 1800’s with the discovery of gold has now evolved to encompass a virtual excess of mineral deposits and opportunities.  Our focus has shifted from gold to diamonds but the NWT’s mining industry remains at the forefront of any discussion regarding the economic well-being of Canada’s North.

The NWT produced over $2 billion in total mineral shipments in 2011, a staggering total when you consider the nature and size of our jurisdiction.


Slide 3

Looking ahead, we have added rare earth metals Avalon’s Nechalacho project to our inventory of investment projects.  As you can see from this chart here, at least seven new mining projects are expected over the next decade.

A fourth diamond mine, Gahcho Kué, is undergoing permitting approval.  Once in production, this mine will move the NWT into record growth.

That’s just our mining industry!
 

Slide 4

The NWT also lays claim to one the richest and longest operating oil fields in Canada  at Norman Wells – and with a potentially enormous new oil prospect in the Mackenzie Mountains, we are getting set to revitalize this sector.

In recent months we have attracted significant international interest for the potential of shale gas development in the Sahtu Region and along our southern border with BC.

We are hearing from experts that there is huge potential for unconventional oil and gas reserves in the Sahtu Region.

Recent investments also indicate to me that industry has confidence in the figures that estimate the vast economic and development potential that exists in the NWT’s oil and gas reserves.

A recent land sale for petroleum exploration rates generated over $92 million of work commitments for two parcels in the Sahtu Region of the Northwest Territories.  This, combined with the previous commitments of $536 million for 13 parcels in the Mackenzie Delta and the Sahtu Means that the oil and gas industry has committed to an impressive $628 million of exploration for the next four to five years.
 

Slide 5

We are working to define our share of the Arctic offshore potential - An estimated 90 billion barrels of undiscovered recoverable oil; 1,670 trillion cubic feet of recoverable natural gas; and 44 billion barrels of recoverable natural gas liquids in 25 geologically defined areas north of the Arctic Circle.
 

Slide 6

In March of last year we cleared the regulatory hurdles for the MacKenzie Gas Project – the biggest single investment proposal ever contemplated for the North.
 

Slide 7

Beyond our rich resource potential there is the potential for hydro development – the Mackenzie River has some of the best undeveloped hydroelectric resources in North America.

At a smaller scale, we have also advanced successful alternative energy developments including: wind, solar and bio mass initiatives.

The Northwest Territories is even lining up to be an important player in the new digital economy.  A proposed high-speed fibre optic link to deliver satellite data to Southern Canada has the potential to provide greater growth and diversity for our economy.
 

Slide 8

All of this, of course, comes from a vast and unique arctic landscape – the value of which is also climbing as a global tourism destination.

The billing for this plenary session promised an overview of current and future economic development in the NWT.
 

Slide 9

This, then, is the list of opportunities and potential that exists in the Northwest Territories today – as I mentioned, currently seven potential mining projects in the next decade.

The challenge before us - is to convert this overwhelming list of potential into tangible and real investment.  And, to my mind - that is first and foremost - why we are here today.

We are all investors – in one way or another - in the future of our individual Territories and our North.

For my part today, I would like to highlight some of the areas in which the Government of the Northwest Territories has – and is - investing in the economic potential of the NWT.

If the NWT’s diamond industry has taught me anything, it is the importance of the three C’s.  So in that vein I have compiled for you the three C’s of our Government’s investment priorities…
 

Slide 10

The first C is Certainty

The GNWT is striving to provide the certainty that will allow investors – especially in our country’s resource industry - to commit to more exploration and development in our Territory.

The first step to creating certainty is to eliminate uncertainty – and unfortunately, uncertainty is something that we have a lot of.
 

Slide 11

This is a time of change in the NWT. The negotiation and settling of land claims and self-government agreements with Aboriginal peoples, the Government of Canada’s actions related to regulatory improvements, and the negotiation of the transfer of land and water responsibilities from Canada to the Government of the NWT are all occurring simultaneously.

They are all necessary elements of our political coming of age.
 

Slide 12

Premier McLeod spoke to the important and exciting progress that we have seen in negotiations to finalize an Agreement on Devolution.  I think we all recognize that this has been a difficult and frustrating for industry and for NWT residents and businesses.

Acquiring the tools and resources we need to better manage our affairs will be mutually beneficial for everybody in the North.  It will allow us to streamline and simplify our Government processes, increase investor confidence and – in turn - facilitate the investment that will generate jobs and responsible economic growth, while ensuring environmental stewardship remains paramount.

The certainty of rights and process is what is drives our investment in Devolution. It is behind our commitment to actively negotiate and settle land claims and it is the impetus for our investments in major policy frameworks such as the GNWT’s Sustainable Development Policy, the NWT Water Stewardship Strategy and the Land Use and Sustainability Strategy.
 

Slide 13

Meanwhile, we are investing in other types of certainty as well.  Together with the federal Government, we fund ongoing geoscience studies - to ensure that public geoscience information remains a constant - one that underpins our resource industries and allows industry to focus their exploration and drilling efforts.

Mineral development activities are an important element of the NWT economy and many residents and NWT businesses benefit from direct employment or mine spending.  But, increasingly the NWT is competing with jurisdictions across Canada and the world for this mining investment.
 

Slide 14

Recognizing these factors, and to provide even greater certainty, we have also begun to invest – with key partners and stakeholders – in the creation of a mineral development strategy for our Territory.

We believe this will help us attract future mining investment and encourage further exploration while continuing to ensure that this development occurs in a carefully planned and sustainable manner.
 

Slide 15

The second C that we are investing in is Cost – specifically reducing the cost of doing business in the NWT.

Investing in the means to provide affordable energy to an area as vast as the NWT is a huge undertaking for our Government - both in the challenges it provides and the opportunities it is creating.
 

Slide 16

We have some of the greatest hydro development potential in the world.

The ability to generate this energy in a sustainable and affordable manner would support almost every other economic activity in our Territory.  It could help lengthen the life of existing mines and make proposed mining and other development projects more viable.  It is one way to address the high costs of energy in our Territory in the long term.
 

Slide 17

In the meantime, we must continue to invest in ways to reduce energy costs in our communities today.  Most notably, we rationalized our electricity rates through a comprehensive Electricity Review process for that reason  and we are quickly becoming a recognized leader in our support of alternative energy sources – including, for example, bio mass and the investment and installation of commercial-wood pellet boilers.
 

Slide 18

Other types of infrastructure investment are also working to lower production and living costs, improve access to needed materials and supplies, improve market access and open our Territory to investment.

Since 2009, the GNWT has made a record investment of $1.1 billion in roads, bridges, schools, health centres, houses and other critical infrastructure essential to strong communities and sustained economic activity.

I spoke earlier this week as the GNWT’s Minister of Transportation about the imminent completion of the long awaited Deh Cho Bridge at Fort Providence and our plans to advance construction of an all-weather highway down the Mackenzie Valley.

Both of these investments will reduce costs for resource companies, provide incentive for further exploration, and create significant employment opportunities during their construction and ongoing maintenance.
 

Slide 19

IT is estimated that the development of a complete north-south Highway route through the Mackenzie Valley to Tuktoyaktuk would generate 14,000 jobs during construction, $15.7 million in additional disposable income annually, lead to a 20% increase in tourism, and produce savings of $1.5 to $2.2 billion for industry if oil and gas development proceeds.

Off course, in these terms, there is no proposed infrastructure investment in the NWT – or Canada for that matter - that can rival the potential of the Mackenzie Gas Project.

But again - a critical and often overlooked element to our ongoing investment in this project – is the access it will provide to a secure and cost-effective energy supply in communities currently dependant on diesel.

The supply of natural gas to accessible communities could result in up to a 47% reduction in the cost of fuel when this project is completed.

 
Slide 20

The final investment priority – the third C - is Capacity.

In the last decade, resource-based exploration and development has driven our economy and presented us with unprecedented opportunities for employment and business.  Our emergence as a world leader in diamond production changed the way that we do business in the NWT.

Northern and aboriginal companies have proven that they can participate directly in economic activities, as business owners, operators, investors and partners - in airlines, construction and transportation, telecommunications, oil and gas service, drilling, hotels and the hospitality sector.

Our government is building on this reality.  We recognize that for our businesses to grow and flourish they need access to markets, capital funds and equipment, technologies and up to date knowledge and information.

Through direct funding and contribution initiatives, incentives for manufacturers, the GNWT’s Business Incentive Policy - and the implementation of Agreements that guide and dictate hiring and procurement in our Territory - we have worked and invested to maximize the benefits of our resource development - building business capacity in our communities, corporations and businesses; and investing in in the education and skill development of our youth who will empower this growth.
 

Slide 21

The Northwest Territories Mine Training Society is a noteworthy example.  Through this non-profit, collaborative approach the NWT has developed and invested in innovative, world class, training programs - and placed more than 300 NWT residents into mining jobs.  The proof is in the steadily increasing level of skill and knowledge evident in our people today.
 

Slide 22

The GNWT is currently investing in a general Economic Development Strategy that will build on what has evolved from our diamond experience to highlight how business activities can be promoted and supported in all of the NWT’s regions.

Similar to our mineral development strategy, the NWT’s new Economic Development Strategy will identify opportunities investment and growth; build capacity in our communities; and self-sufficiency in our people – all in a manner that reflects the priorities of responsibility and environmentally sustainability that our Territory holds. 

(Conclusion)

Ladies and Gentlemen, the GNWT’s economic vision for the Northwest Territories - is to realize, responsibly, the full potential of our rich resource base and use it to ensure lasting prosperity for NWT residents and their communities.

We believe that the incredible resource potential that exists in our region can meet the resource demands of a growing world population and will – in the coming years - position our region as one of the major economic drivers of Canada.

The ever-expanding exploration and development of the NWT’s wealth of natural resources presents a solid economic foundation – and unprecedented opportunities for employment and business development.

In order to realize the economic potential of our extraordinary natural resource wealth, we are open for business.  We are working to create the conditions for success that will benefit those of you who are willing to partner and invest in the sustainable and respectful development of our region.

Our commitment is reflected in the investments that we have already put in place and are building on – investments in the certainty, cost reduction and capacity building that we believe will support your investment.
 

Slide 23

Thank you and I look forward to any questions you may have.