Market Update: NWT business groups urge GNWT to completely rethink economic plan – Full Analysis

The NWT’s approach to its economy hasn’t worked in a generation and must be completely rethought, three of the territory’s business groups say.

AME Roundup, a major mining conference that forms an annual pilgrimage for NWT ministers, begins in Vancouver on Monday.

The open letter from the Yellowknife Chamber of Commerce, NWT & Nunavut Construction Association and NWT Chamber of Commerce appeared carefully timed. It was circulated to reporters on Sunday, a day before Roundup starts.

As the basis for their call to action, the groups cited Cabin Radio’s previous reporting that the territory’s gross domestic product has essentially flatlined for decades, whereas the GDPs of Nunavut and Yukon have grown significantly.

“Our economy hasn’t grown in more than twenty years while every other province and territory has,” the groups wrote.

“This stark reality is proof that what we have been doing for a generation has not worked and that continuing down the same path is not an option.

“This is not just a call to industry leaders, but to every government, Indigenous, regulatory, NGO, and not-for-profit leader across the Northwest Territories.”

The groups said “difficult and disruptive” change is now necessary, though the letter stopped short of identifying specific actions beyond swift collaboration and diversification.

“The first step is to stop pointing fingers and making excuses,” the groups wrote.

“We must acknowledge that we, collectively, are responsible for the current state of our economy. This decline began long before the recent downturn in diamond prices, before Covid-19, before evacuations, and before recent global disruptions.

“We also cannot dismiss the data or claim that GDP ‘doesn’t apply’ to us. The numbers are clear, and the message is urgent.”

GNWT sees ‘inflection point’

Roundup is relevant because the NWT government maintains that mining is key to any economic revival the territory can hope to have.

The three business groups did not dwell at length on mining in their letter, but did call for a “sustained, generational resource economy” to be developed – an indication of their support for that path. (Alternative revenue sources include tourism and the conservation economy, which proponents argue require meaningful consideration, while critics say they cannot generate the money the NWT needs.)

The Vancouver conference is, alongside Toronto’s PDAC, one of two major annual opportunities in Canada to meet mining powers face to face.

“Canada and the world are engaging with the North amid a rapidly shifting global landscape. This is not a passing moment or trend. It is an inflection point in a long-term shift that represents growing opportunity for the North,” the GNWT stated last week, explaining why Premier RJ Simpson and colleagues will be at Roundup.

“The Government of the Northwest Territories will use this opportunity to announce new agreements, products, and funding, reinforcing the territory’s position and potential with key decision-makers at Roundup.”

Those announcements are expected to include an increase in funding for Indigenous governments to participate in land and resource management, alongside some incremental progress in planning for the Arctic Economic and Security Corridor – a proposed highway from the NWT to a Nunavut deepwater port.

“The Northwest Territories is poised to be a critical player in Canada’s economic growth, resource security and clean energy future,” the GNWT stated.

“It is a critical time to ensure the territory is visible and recognized as a strong jurisdiction for investment.”

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