There’s no denying the importance of the mining sector for the NWT’s economy, but at the same time this key industry has become completely dependent on a single commodity in recent times: Diamonds. Over the years, gold, lead, zinc, silver, tungsten, radium and many other minerals have been mined around the territory, but those days are currently in the rearview mirror. As the recent downturn has shown us, economic dependence on a single item plucked from the ground is never good – even something as lucrative as diamonds.
When prices for rough gems dropped a couple of years back and NWT mines were forced to trim operating costs, the territory has been suffering through the miners’ belt-tightening ever since. Despite the decline, diamond mining remains the dominant industry in the NWT.
“Resource projects, such as the diamond mines, provide the GNWT with a significant portion of corporate income tax, fuel tax, and property tax revenues and the projects’ employees provide payroll tax and personal income tax revenues,” said Andrew Livingstone, Senior GNWT Cabinet Communications Advisor. “Over the past three years, diamond mines contributed 41 per cent of the GNWT’s corporate income, fuel, property and payroll tax revenue.” Continue Reading →