Socio-Economic Impacts of the Nanisivik and Polaris Mines, Nunavut, Canada

Abstract

Nunavut has gained importance in the last few years as an area of high mineral potential with exploration leading to discoveries of several mineral deposits that have, or will in the coming years, become mines. As a territory with an economy based in large part on government employment, new mining operations have the potential to provide Nunavut with an alternative way to develop its economy through job creation, local business opportunities, royalties, and taxes. Mining could provide the people of Nunavut with training opportunities for various jobs that can later be used for employment with community-based businesses. Understanding the socio-economic impacts of past Arctic mining operations, such as the Polaris and Nanisivik Mines, is important if these opportunities are to become reality and if Nunavut is to benefit as much as possible from future mining operations.

The Polaris and Nanisivik lead-zinc mines closed in 2002 after over 20 years of operation. Each mine was located near an Inuit community: Polaris, situated 100 km northwest of Resolute, was a fly-in/fly-out operation that used Resolute as a staging point; and Nanisivik was a community-based operation connected to Arctic Bay by a 21 km-long all-weather road. The differences between the physical connections of the mines to Inuit communities provide a good opportunity to compare and contrast their socio-economic impacts on each community.

This qualitative study uses company and government reports and the data from 51 interviews, conducted over a 4-week period in January–February 2005 with residents of Resolute and Arctic Bay, to learn how current and future mining in Nunavut might better establish long-lasting, positive socio-economic benefits according to current sustainable development practices (Bowes-Lyon 2006).

The results reveal that community members believe the mines had some positive short-term impacts, but few lasting benefits. Positive economic impacts included the creation of new businesses and jobs at the mines, with resulting increased incomes; however, many of these benefits disappeared after mine closure. Positive social impacts were restricted to better education opportunities at the Nanisivik school, whereas negative impacts included increased alcohol consumption. The benefits of employment were mixed because, although employment was available to local Inuit, training was limited and did not in general lead to any certification that could be transfered to other jobs after mine closure.

Overall, it is concluded that because the benefits were not numerous and mostly did not persist after mine closure these mines did not contribute to the long-term sustainable development of the region. To increase socio-economic benefits and assist communities with fulfilling their sustainable development objectives, mining companies in Nunavut should emphasize education and training for locals and encourage local business development and partnerships, through strong relationships and close communication with involved stakeholders.