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Manitoba
Manitoba's northern region covers more than 82% of the province and is home to over 82,000 residents, the majority of which are Aboriginal. Northern Manitoba is important for its forest, wildlife, fishing and mining resources, its growing tourism industry, and the region's production of hydroelectricity for both domestic consumption and export. |
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Key Industries
Mining
Mining is the second largest primary resource sector of Manitoba's economy. In 2006, high metal prices helped push the value of mineral production in the province to an all-time high of more than $2 billion, a 61.5% increase over 2005. The industry employed approximately 3,500 people directly and another 14,000 indirectly in 2006. Seven of the eight producing nickel, copper, zinc and gold mines are located in the North, in addition to Manitoba's two smelters and two refineries. Exploration companies spent a record $52.9 million in 2005 to explore Manitoba’s mineral potential.
Forestry
The boreal forests of Northern Manitoba support the majority of the province's forest industry, providing resources for kraft paper, lumber, OSB and newsprint. The primary wood product sector generates approximately $500 million in sales annually, and directly employs 3,300 people. The industry is export oriented, with 75% of primary wood products being exported. Principle export markets include the United States, Europe and Japan. The Aspen Parkland supports many small forest operations and contains some of the most productive forest in the province.
Commercial Fishing
Despite Manitoba's prairie reputation, freshwater fisheries play an important role in the province's economy, employing approximately 1,500 fishers in the North. Northern Manitoba fishers received initial payments totaling $16.0 million in 2006-2007, accounting for 66% of the provincial catch by weight. In 2005 export sales accounted for approximately 77% of total annual sales of commercially caught fish processed by the Freshwater Fish Marketing Corporation.
Hydroelectricity
Hydroelectric power represents 98% of Manitoba's total generated electrical power. There are eight generating stations in the North producing about 85% of the province's total hydroelectric capacity. Electricity sales for the province in 2005-2006 totaled $1.88 billion. Manitoba Hydro exports to over 30 electric utilities in Canada and the mid-western United States and was distinguished as Canada’s largest exporter of electricity to the United States in the 2005 calendar year. Investment in hydroelectric infrastructure based on original cost at the time of construction exceeds $11 billion.
Northern Manitoba's Contributions to the Economy
Value of Exports for Key Sectors (province):
- Metals $2 billion (est. 2006)
- Primary wood sector $400 million (est. 2006)
- Electricity $881 million (2005-2006)
Capital Investments of Major Projects in Northern Manitoba
- $6.3 billion of potential capital investment in hydroelectricity generation and transmission projects at Wuskwatim ($1.3 billion) and the proposed Conawapa project ($5 billion).
- CVRD Inco is planning approximately $135 million in capital spending for 2007 at the Thompson mining complex.
- HudBay Mineral's capital expenditures for their Manitoba operations are forecast at $85 million.
- San Gold Corporation’s projected capital expenditures for 2007 total approximately $20 million on mine development at their Bissett operation.
- Over $1.6 billion of proposed transportation infrastructure 2007-2011.
A Look to the Future
Mining will continue to be a significant economic activity in Northern Manitoba, with 2007 capital investment estimated at $406.5 million and exploration spending estimated at $49.5 million. Three advanced exploration projects have the potential to become Northern Manitoba’s next mines: the Crowflight Minerals Inc. Bucko nickel-copper deposit near Wabowden, HudBay Minerals Inc.’s Bur deposit for copper-zinc near Snow Lake and Black Pearl Minerals Consolidated Inc.’s Ferro/Wekusko gold property east of Snow Lake.
Proposed northern hydroelectricity projects have the potential to create significant benefits for northern communities in terms of jobs, training and a share in future revenues, not to mention the environmental benefits in displacing coal power. Export agreements include a ten-year $1.7 billion contract with Minneapolis-based Northern States Power.
With its abundant natural areas and wildlife, along with its diverse geographic features, Northern Manitoba is well positioned to respond to an increasing industry demand for outdoor tourism and ecotourism products including wildlife tours, adventure tourism and opportunities to experience northern cultures.
Northern Manitoba's forestry resources are largely underutilized, creating opportunities to expand the region's forestry industry. Manitoba offers a number of economic factor advantages that support the sector including the availability of significant quantities of uncommitted fibre, low cost reliable electricity, a skilled workforce, and linkages to a large secondary wood products industry and access to markets in the US Midwest.
Manitoba is also taking steps to develop the untapped human resource potential of the northern population. Education and training partnerships leading to future employment are in place as are plans for a new campus for the University College of the North. Social and economic development is supported by a focus on Community Economic Development, entrepreneurial skill development, and economic diversification through non-timber forest product development.
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