Canada's rising star is in the North.

In Yukon, the Northwest Territories (NWT) and Nunavut, great economic and social opportunities lie just around the corner - thanks to the land's abundance of untapped natural resources, its magnetic attraction to visitors, the spirit of co-operation that prevails among Northerners, and the desire to work with industry and others to make the most of these opportunities.

Especially important will be sustainable development of the North's rich natural resources: oil and gas, timber, diamonds, gold, base metals, and more. These sectors will drive the North's economy towards self-sufficiency.

Partnerships among governments, Aboriginal groups, industry and Northerners will bring the North the prosperity and security it deserves.

The Government of Canada believes in the North and its potential, and that the North has an important role to play in building a better Canada. New funding in the 2003 Budget is provided to address a number of priorities in the North, such as health, skills development for Aboriginal people and Northerners, sustainable development and to address important environmental issues including climate change and contaminated sites. As one of several Government of Canada departments in the North, the Department of Indian Affairs and Northern Development (DIAND) is working toward these priorities to develop healthy, sustainable communities and to help them achieve their economic and social goals through economic development, environmental initiatives, and devolution. DIAND regional offices in Nunavut, NWT and Yukon provide a range of departmental services, including the federal government's financial and legal obligations to Aboriginal people. To find out more about how the Government of Canada is working for Canadians, go to www.canada.gc.ca  .

Economic development

In Nunavut and NWT, DIAND has a wide array of responsibilities for mineral and petroleum development onshore, as well as offshore. In Yukon, responsibility for managing onshore oil and gas resources has already been transferred to the Government of Yukon, while devolution has recently handed over administration and control of mineral development on most public land to the territory. In all cases, DIAND promotes investment in resource development while ensuring resources are managed wisely.

DIAND also stimulates economic development through programs offered to First Nations and Inuit communities that support their businesses to take advantage of the chance to grow and gain greater skills. The goal is to create dynamic partnerships with other communities, governments and the private sector to create local economic wealth.

Environmental initiatives

DIAND has regulatory responsibilities to ensure that development is environmen-tally sound. Regional offices manage the delivery of environmental programs, implement environmental management measures, deliver the Northern Contaminants Program, and clean up contaminated sites on Crown land.

DIAND no longer has sole responsibility for assessing and permitting resource development and use. Today, the Department works with resource and environmental management boards resulting from comprehensive land claim settlements and self-government agreements. In conjunction with the Department, the boards are responsible for resource management.

DIAND is also working to shield the North against future environmental problems, and to protect the Canadian public from future liabilities. New mine site reclamation policies for Nunavut and NWT strengthen federal standards for the protection of the environment. A similar policy is being developed for Yukon. And as a result of legislative changes, DIAND now collects enough financial security deposits from mining companies to fully cover the costs for the eventual cleanup and closure of mine sites.

Devolution

DIAND is devolving provincial-like land and resource management responsibilities to Northern governments. These are important tools for Northern development. As of April 1, 2003, control over administration of public land and resources is with the Yukon government. Negotiations have begun in NWT to transfer control of land and resource-based activities. Nunavut, Canada's youngest territory, came into being on April 1, 1999. DIAND is working with the Government of Nunavut and other partners to lay the foundation for the transfer of land and resource management responsibilities to that territory.

Through these and other endeavours, DIAND is responding to the desire of Northerners to attain a better quality of life and to become economically self-sufficient. The feedback of Northerners, meanwhile, is extremely helpful in guiding the Government of Canada in how to best address local concerns. Together, DIAND and Northerners will unleash the potential of a new star - the Canadian North.

Tell us what you think

Did you find the information in this publication helpful?

Would you like to know more about other programs or services offered by DIAND?

How would you like to be kept informed - through community radio, television, newspaper supplements, e-mail announcements, Web site updates, or other means?

You have the right to know about progress on Government of Canada initiatives in the North. Let us know how DIAND can best provide you with this information. Your comments are very important and are greatly appreciated.

Send your comments to:

Northern Communications
Department of Indian Affairs and Northern Development
Room 1900, 10 Wellington St., Hull, QC K1A OH4
Phone: 1-800-567-9604
TTY phone number (for the hearing impaired): 1-866-553-0554
E-mail: Update@inac.gc.ca

Published under the authority of the Minister of Indian Affairs and Northern Development
Ottawa, 2003

QS-6184-000-EE-A1
Catalogue No. R2-246/2003E
ISBN 0-662-33674-7
ISSN 0-662-33676-3
© Minister of Public Works and Government Services Canada
Cette publication peut aussi être obtenue en français sous le titre :
Partenaires dans l'essor du Nord

Environmentally-friendly businesses are smart investments, since they can offer benefits today without jeopardizing benefits for future generations.

The Government of Canada strongly believes in sustainable development in the North to create jobs and improve quality of life for Northerners. That is why DIAND supports ecologically sound business activities like the Inuvik Gas Project in Inuvik, NWT and the Montana Services tourism complex in Carcross, Yukon.

The Inuvialuit of the western Arctic, who settled their land claim in 1984, seized an opportunity to establish the first commercial natural gas development north of the Arctic Circle. Based on a project feasibility study jointly funded by DIAND, the Government of the Northwest Territories (GNWT) and the Inuvialuit Regional Corporation (IRC), the $44-million Inuvik Gas Project has seen 600 out of 800 customers convert from diesel to clean-burning natural gas since opening for business in 1999, earning residential customers annual savings of between $500 and $2,000.

"It was done as an economic investment," says Inuvialuit Petroleum Corporation (IPC) chief financial officer Wilf Blonde, "recognizing that this would benefit the people of the town of Inuvik" - not just Inuvialuit beneficiaries, but also Gwich'in and non-Aboriginal residents.

IPC, a subsidiary of the Inuvialuit Regional Corporation parent land claim organization, purchased a natural gas field 50 kilometres northwest of Inuvik - the Ikhil Reservoir, capable of supplying Inuvik for the next 15 to 20 years. Armed with considerable experience in operating gas wells, IPC then invited two talented companies to join its team in 1998: AltaGas, skilled in small diameter pipelining and facility operation, and natural gas distribution expert Enbridge.

The trio owns and operates Inuvik Gas Ltd., which distributes natural gas in Inuvik. Clients include the Town of Inuvik - where the Mackenzie Delta's current oil and gas exploration economic boom is centred - and the NWT Power Corporation, which uses natural gas to generate electricity.

"The town has really grown," says Inuvik Gas Ltd. manager Lyle Neis. "From an overall project point of view, natural gas delivery volumes have increased every year." Carbon dioxide emissions in Inuvik have dropped significantly as well. It is estimated that greenhouse gas will be reduced by at least 12,000 tonnes a year.

Luring the RV crowd

Over in Yukon, the Carcross/Tagish First Nation invested in another sustainable industry - tourism. With a $250,000 grant from DIAND and other financing, the First Nation bought a piece of paradise in 1998 in scenic Carcross, where lush green forests and still blue lakes surround snow-capped mountains. Snapping up a restaurant, gas station, convenience store and laundromat at this ideal location on the Klondike Highway two hours north of Skagway, the Carcross/Tagish First Nation added a recreational vehicle park with 40 fully serviced lots, and named the entire complex Montana Services - a tribute to nearby Montana Mountain. By the end of March 2002, annual sales reached $1.7 million.

Unlike mining or lumber, tourism is a very sustainable industry for the First Nation's traditional territory, says Bill Forsythe, director of development of the Carcross/ Tagish Development Corporation. Local residents gain skills that will serve them well anywhere. "If you were trained in tourism, whether you're in the Yukon, Vancouver or Toronto, you could still work in the tourism industry," Forsythe notes.

The First Nation, along with the Development Corporation, are now considering building a cultural museum, expanding activities for the busloads of tourists who visit from cruise ships in Skagway, and planning a luxurious $20-25 million resort. Although the timing of some of these projects may hinge on the outcome of the First Nation's land claim negotiations, tourism's sustainable appeal is a business they know they can champion.

Jimi Onalik has had his eye on the sky since he was five years old.

At 14, he was taking flying lessons. Today, the 28-year-old Iqaluit businessman and commercial pilot commands his own airline, with a staff of 13 full-time and contract employees, and an expanding market base that includes adventure tourism trips to Antarctica.

Inuit-owned Unaalik Aviation Inc. took to the skies in the spring of 2002. ("Unaalik" is the original Inuktitut spelling of Onalik's name.) Revving up such a capital-intensive business required a full team of financiers - among them, DIAND. Under its Opportunity Fund and Resource Acquisition Initiative, DIAND provided $100,000 to match equity funding so that Unaalik could obtain conventional debt financing. The Government of Canada is committed to supporting economic development in the North, and air transportation is one of the most vital services required by Northerners. A Nunavut-based airline also bolsters training and employment for pilots familiar with northern aviation.

While most financing for Unaalik Aviation has come from Bombardier Capital and the Royal Bank, important leveraging also came from financing through Atuqtuarvik Corporation, an Inuit investment and loans firm in Nunavut, and investments from the Kakivak small business development association and the Government of Nunavut.

First Air agreement generates regular revenue

Key to Unaalik's early success was securing a 10-year agreement with First Air to run its scheduled service between Iqaluit and Kimmirut (Unaalik operates two Twin Otters, one of which is leased from First Air). It is a win-win situation, providing Unaalik with regular guaranteed revenue, and Iqaluit with a locally-based service.

Onalik used a similar financing strategy back in 1997 in his hometown of Rankin Inlet, when he and partner Shaun Harman made plans to buy a Cessna 206 float plane to lease to Skyward Aviation in Thompson, Manitoba. Before acquiring the plane, "we showed up at the bank with no history but with a five-year (business) contract in our hands that showed we'd be covering off our cost."

In Nunavut, Unaalik's other services are charter runs for tourists and to North Warning System sites. Last fall, Antarctica entered Unaalik's world when the company struck a partnership with Canadian-owned Adventure Network International. Twin Otters, unsurpassed at navigating short airstrips and rough tundra, are ideal for destinations like wind-swept Antarctica. They are also very expensive - each costing between $1-2 million US (since production of the aircraft ceased in the mid-1980s).

"Our market up here is very seasonal, where we're doing a lot of flying in the summer and almost none in the winter," says Onalik. He saw an ideal business opportunity: to service Antarctica during the southern hemisphere's long light-filled summer months (November to March).

It was also a natural fit for Unaalik's experienced staff. Unaalik chief pilot Colin Gunn has flown in Antarctica before, and president and director of operations Pat Carter, previously senior director for Asia Pacific with the now-defunct Canada 3000 airline, has international business savvy.

Specializing in the Twin Otter - "a service that's in demand around the world" - Unaalik hopes to expand into other rugged climates. With a corporate philosophy that invests heavily in safety training, and a cockpit full of experienced pilots and engineers, the sky's the limit.

"Twenty years from now," Onalik vows, "I still want to be in this business."

Creating jobs and wealth within the community

In Nunavut, DIAND's Opportunity Fund provides eligible Inuit businesses with up to $500,000, matching funding the company has already obtained. With this combined amount, the business owner can access a regular bank loan to start a new business or expand an existing one. The Resource Acquisition Initiative, meanwhile, helps communities get money for new businesses in the natural resources sector. Both programs are adminis-tered through Community Economic Development Organizations.

Another example of a company aided by the Opportunity Fund is Innirvik Support Services Ltd. of Iqaluit, a firm providing office support services and translation. With the help of $100,000 in funding, the company expanded and merged with Nunavut Tusaavut Inc., another Iqaluit business specializing in translation, interpretation and large-scale translation equipment rentals and sales. By combining the two ventures, Innirvik Support Services Ltd. reduced operating capital costs, stabilized the operation and secured a broader range of future prospects which help ensure long-term benefits for Nunavut.

Years ago, development of the North was undertaken using then accepted environmental protection methods. Today those methods are no longer accepted.

In some places, harmful contaminants still threaten the land, wildlife and people. Through partnerships and community involvement, however, DIAND is working to protect the environment, local residents and economies, and to get rid of contaminants.

In the fall of 2002, DIAND and the Tr'ondek Hwëch'in First Nation teamed up to devise a solution to the threat left by the abandoned Clinton Creek Asbestos Mine in Yukon. The mine, about 100 kilometres west of Dawson, operated between 1968 and 1978. Serpentine ore was mined, creating waste rock in the process. In 1974, one of its waste rock dumps slid entirely into the Clinton Creek Valley, stopping the Clinton Creek from draining and creating a landslide dam and reservoir (now named Hudgeon Lake). Had the waste rock shifted again, the downstream flooding would have been disastrous for area residents, as well as to the local salmon fishery - central to the social, cultural and economic well-being of the Tr'ondek Hwëch'in people.

DIAND stepped in "for the protection of human health and safety," says Brett Hartshorne, manager of DIAND's Waste Management and Northern Contaminants Program in Yukon. The Tr'ondek Hwëch'in First Nation-owned Hän Construction com-pany was hired to stabilize a water stream flowing from Hudgeon Lake. They did that by building 'gabion weirs,' rock-filled wire mesh baskets that slow down fast-flowing water and add mass to the lake outlet.

"It was pretty high energy stuff," says Hän Construction general manager John "Mitch" Mitchell of the six weeks between the end of August and beginning of October when work had to be done - after summer rains and runoff, and before the ferry across the Yukon River closed down for winter. The narrow, deep job site meant that the crew of almost a dozen could only get one or two pieces of equipment in at a time for this labour-intensive job. But they met these and other challenges, adding strengths of their own.

"A lot of the local knowledge of the dirt work (grading the waste rock slopes) proved to be very, very useful," Mitchell says.

Contaminated soil heads south

Over in Nunavut, on Resolution Island southeast of Iqaluit, moving dirt has been the goal since 1997. In this case, the soil is contami-nated with harmful polychlorinated biphenyls (PCBs), hydrocarbon, lead, cobalt, mercury and copper.

The federally-owned Resolution Island was used as a military radar base from 1953 to 1972. More than 20 buildings, eight dump sites, 4,000 barrels - hundreds of them leaking oil - and garbage were left behind. PCBs ebbed out of old electrical equipment, and now soil contamination levels exceed federal standards. It was also feared that marine life would die if PCB liquids drained out to sea.

Today, with the help of contractor Qikiqtaaluk Corporation, an Inuit economic development corporation in Nunavut's Baffin Region, unsafe buildings have been bulldozed, PCB liquids removed, waste oil burned off, and contaminated soil put in containers.

Glen Stephens, manager of environment and contaminants for DIAND's Nunavut Regional Office, says the first load of contaminated soil will likely be shipped to a PCB treat-ment facility in the south by September 2003. If plans remain on track, Resolution Island will be clean once more by 2005.

From Yukon to Nunavut, DIAND is striving to return to Northerners the unspoiled world that was theirs in the past.

Northern Contaminants Program

Persistent organic pollutants (POPs), heavy metals and radionuclides are contaminants that have made their way into the Arctic ecosystem, either carried by air or transported here by other means. They can be harmful to the health of people and their environment. Some contaminants have been found at high levels in humans as well as in some of the wildlife that Northerners harvest.

Since 1991, DIAND's Northern Contaminants Program (NCP) has worked with territorial governments, Aboriginal organizations, university researchers and other federal departments to try to reduce and, where possible, eliminate contaminants in the country food that Northerners eat. The program also works with other Arctic countries through the Arctic Council's Arctic Monitoring and Assessment Programme to monitor this type of pollution throughout the circumpolar region. The NCP's findings have had international impact - helping, for example, to bring about the 2001 Stockholm POPs Convention to reduce POPs around the world.

Nothing is more important than the health and safety of people. That's why DIAND, responding to public concerns about two abandoned mine sites in NWT, is making sure that remediation is a priority.

The people who live in the Northwest Territories play a key role DIAND's initiatives. cleanup of Colomac Mine calls for community involvement decision-making and actual work on site. plans Giant site will have input an independent panel scientific experts to help shape management safely manage toxic waste.

When Royal Oak Mines, Inc. went bankrupt in 1999, DIAND assumed responsibility for the care and maintenance of the abandoned Giant Mine in Yellowknife, and the Colomac Mine located 180 kilometres north of Rae-Edzo. DIAND also assumed responsibility for preparing an arsenic trioxide project description for the Giant Mine.

The public health and safety of Northerners and protecting the environment are priorities. In the years since DIAND took over responsibility for cleaning up the Colomac Mine, and care and maintenance of the Giant Mine, it has worked in partnership with communities, local and territorial governments, technical experts and others to find long-term environmental solutions.

Stakeholder involvement crucial

At Colomac, tailings water contaminated with cyanide, a chemical used to get gold out of the ore, demands that a water treatment solution be found by 2006. Rainfall and snowmelt will eventually fill up the Tailings Containment Area (TCA). Once the water is treated, it will be released into the environment.

Comprised of scientists, community members, DIAND and the Department of Public Works and Government Services, the Colomac Team is making sure that the contamination problem does not worsen between now and 2006. One of these members is Tli Cho Logistics, a Rae Band-owned company hired by DIAND "to ensure that the site is kept at the status it was left at when the mine was abandoned," says Tli Cho Logistics manager of operations Lloyd Woloshyn. The nearby Dogrib First Nation depends on wildlife, rivers and lakes near the mine site. The work has brought jobs and training opportunities to Dogrib Treaty 11 beneficiaries - from cook's helpers, housekeepers, general labourers and apprentices to plumbers, electricians, carpenters, mechanics, and heavy equipment operators. With 27 positions available in two-week rotation periods, the cleanup provides work to 54 staff.

"It does make an impact on a community of 2,000," Woloshyn notes.

At the Giant Mine site, the concern is what to do with 237,000 tonnes of arsenic trioxide dust - a byproduct of more than 50 years of roasting and milling of arsenopyrite ore -which is stored underground.

"I can't think of another example anywhere in the world where there's so much arsenic dust stored at one location," says Bill Mitchell, manager of the Giant Mine Remediation Project. In mid-January, the public heard first-hand about management possibilities from the technical advisor firm SRK Consulting, during a public workshop in Yellowknife. An Independent Peer Review Panel, with nine of Canada's top scientists, risk assessment professionals, toxicologists and mine engineers, has examined the consultant's recommendations.

The public workshop kicked off a series of extensive public consultations including small group discussions and public information meetings with presentations from community groups. DIAND is also working with key stakeholder organizations to establish the Giant Mine Community Alliance.

Although some surface cleanup has been started, including a beach that served as a tailings area, "the big work is ahead of us," says Mitchell.

"It's an issue that we're going to have to just manage in the long term. There's no easy solution."

Like the residents of the NWT, DIAND is committed to finding the best long-term solutions for Colomac and Giant, for the well-being of all.

A land claim and self-government agreement with the Tlicho (Dogrib) is moving closer to reality.

The Tlicho Agreement was initialled in September 2002 by negotiators for the Dogrib Treaty 11 Council, the Government of the Northwest Territories (NWT) and the Government of Canada. An information period followed and the Agreement has been amended as a result. It will be re-initialled soon and the ratification process will begin. Under the Agreement, the Tlicho will own a single block of 39,000 square kilometres of land, including the subsurface resources. The land will be adjacent to or surround the four Tlicho communities of Behcho Ko (Rae-Edzo), Wha Ti (Lac la Martre), Gameti (Rae Lakes) and Wekweti (Snare Lakes).

Through land claim agreements like the Tlicho Agreement, Aboriginal communities will gain more effective tools and law-making powers for sustainable economic development, and the chance to become active partners in resource development projects. Settling land claims also paves the way for new jobs and educational opportunities.

Lands not split up

"That was clearly their expressed wish, to have no split estate and a single block of land," says chief federal negotiator on the Tlicho Agreement, Jean-Yves Assiniwi. This decision sets it apart from other Northern agreements, where "settlement lands" were identified in a checker-board fashion and the amount of subsurface land was less than the surface amount.

The Tlicho Government would own the minerals under Tlicho land, and could realize development income from resource royalties, taxes or some other system. The Tlicho Government would also receive a share of federal mineral royalties earned throughout the Mackenzie Valley, just like neighbouring Aboriginal groups with settled claims.

A new Tlicho Government would replace the existing Tlicho bands and tribal council as the Tlicho governing body. The Tlicho Government would protect Tlicho heritage, language and culture, and would be another step towards improving the quality of life for the region's 3,500 Tlicho.

"The Agreement, it's written on a piece of paper, but it is much more than that," says Tlicho chief negotiator John B. Zoe. It's also about building people's strengths and building spirituality. "It's about having a future and getting recognition internally," he says.

The Agreement sets out law-making authority and financing arrangements for the Tlicho Government, and provides participation for Tlicho on resource management boards.

The Government of NWT would continue to provide health, social assistance and educational services for the next 10 years. The Tlicho could either renew these services after that, or assume control of certain services.

Before the Tlicho Agreement can become reality, the Government of Canada and the Government of NWT must pass legislation following ratification.

Northern land claims at a glance

Settled land claims are good for the economy because businesses like to invest where the future is certain. With settled land claims, people know who owns the land and resources. They know what to expect.

Here's where land claim negotiations stand across the North now.

Status of land claim and/or self-government agreements:
Yukon: 8 out of 14 settled
NWT: 4 out of 10 settled
Nunavut: 1 out of 1 settled

With devolution occurring on April 1, 2003, the Government of Yukon takes a giant leap forward with assuming administration and control over public lands and natural resources from the Government of Canada. Since the 1970s, the Government of Yukon has strengthened its administrative responsibilities and gained powers from the federal government.

"This was the last big set of provincial-type responsibilities delivered by the Department of Indian Affairs and Northern Development (DIAND)," says John Ellis, the federal Yukon devolution negotiator. Land and resource management programs and their funding go to the territorial government, and more than 240 federal employees become Yukon government employees.

Transferring land and resource management responsibilities and other provincial-type programs to territorial governments - "devolution" - has long been a goal of the Canadian government. "Through devolution" says Ellis, "Northerners will have more local control over decisions about their future and this increased responsibility will ultimately allow the territories to develop prosperous, more self-sustaining economies and to play a stronger role within the Canadian federation."

With devolution, Yukon becomes responsible for managing most of the federal Crown land in the territory. Some federal lands, such as national parks, were not part of the Devolution Transfer Agreement and continue to be administered by federal departments.

Also, devolution does not affect the lands identified by Yukon First Nations which are negotiating land claim agreements, since identified lands have largely been protected from third party interests through agreement among the Government of Canada, the Yukon Government and Yukon First Nations.

A new constitution for Yukon

The many new responsibilities of Yukon through devolution make it necessary to enact a new Yukon Act, the federal legislation that defines the territory. With devolution, Yukon gains new law-making powers, plus authority to levy and collect resource royalties and other fees previously collected by DIAND through lands and resources management programs - an amount that totaled $1.3 million in the last fiscal year. As resource revenues grow over time, Yukon will be able to keep up to $3 million in resource revenues annually without a reduction in the annual formula financing grant from the Government of Canada.

"April 1 is an historic day when Yukoners begin to enjoy a much larger voice in the growth and development of their territory," says Angus Robertson, Deputy Minister of the Department of Mines, Energy and Resources for the Government of Yukon. "Our immediate goal is to ensure a smooth transition of the devolving programs and services, while at the same time charting a new course for the territory's management of lands and resources."

The real benefits, though, are down the road: changing natural resources legislation, regulations and policies for the benefit of Yukon. Yukon First Nations will be invited to work with the Government of Yukon on the development of new policies and legislation.

"At the top of the priority list is developing a modern piece of forestry legislation," says Robertson. A made-in-Yukon law would "have more flexibility with the type of timber tenures we can provide." (A timber tenure is a government contract that allows a company to harvest timber.) The forestry industry would also be given more choices about wood fibre supplies, and regulations would be more responsive to local needs.

Stronger forestry and mining industries would prove "that the Devolution Agreement was not only a good thing in terms of being able to manage resources in a responsible and responsive way by Yukoners," says Robertson, "but also that it made sense from a fiscal perspective."