Northwest Territories The Northwest Territories covers a vast area, accounting for 13.5% of Canada's landmass, with a population of over 42,000. The territory has a rich and diversified resource base, which supports a thriving and strong economy. The government of the Northwest Territories is building on this foundation by promoting diversified resource development and value-added processing.

Key Industries

Mining
The Northwest Territories has three (Ekati, Diavik, and Snap Lake) of the four commercially producing diamond mines in North America. Production for 2006 was $1.6 billion; with Snap Lake starting production in Fall 2007, the NWT is now the third largest producer by value of rough diamonds in the world. Furthermore, there are five more major mining projects that may enter production over the next five years including a fourth diamond mine, De Beer's second in the NWT, Gahcho Kue. Also, with recent increases in gold and base metal prices, exploration activity has been increasing rapidly.

Oil and Gas
Crude oil shipments were valued at $482 million and natural gas at $98 million in 2006. When gas flows down the proposed Mackenzie Valley Gas Pipeline, gas production will increase to over $2 billion annually. There are an estimated 6 trillion cubic feet of discovered gas reserves and an additional 55 trillion cubic feet of likely gas reserves within the Mackenzie Delta /Beaufort Sea region.

Construction
The construction industry contributed $454 million to gross domestic product in 2006, making it the second largest industry in the Northwest Territories. The industry has developed innovative solutions for Arctic construction and companies in the region have exported their expertise to Russia and other polar regions.

Resource Harvesting
Fish, fur and timber exports were valued at $8 million in 2005. Renewable resource industries are relatively minor in terms of the Territory 's cash economy, but as a source of food and cultural retention, hunting and gathering remain important. About 40% of territorial residents over 15 years of age spend time on the land fishing and hunting.

Tourism
The tourism industry was valued at more than $100 million for the 2005/2006 season, of which half was for business travel. The tourism season in the Northwest Territories is year-round with distinct markets for winter and spring aurora viewing, summer road traffic, and fall fishing and hunting. New opportunities are developing for Aboriginal tourism that will promote unique Aboriginal cultural experiences.

Northwest Territories Contributions to the Economy

Key Economic Indicators for the Northwest Territories

• Gross domestic product was $4 billion in 2006.
• $96,000 per capita gross domestic product in 2006, the highest in Canada.
• $54,000 average income per taxable return in 2004, the highest in Canada.
• 75% rate of employment, the highest in Canada in September 2007.
• $53,000 of commodity exports per capita in 2006.

Major Exports (2006)
Diamonds     $1.6 billion
Crude Oil      $482 million
Natural Gas   $99 million
 
Anticipated Major Project Investments Projected to the Year 2015

• $16 billion for the development of the Mackenzie Valley Pipeline and related gas fields.
• $960 million for the De Beers Gahcho Kue diamond mine project.
• $215 million for the Fortune Minerals Nico gold, cobalt and bismuth mine project.
• $100 million for the Tyhee Yellowknife gold project.
• $41 million for the Prairie Creek silver, zinc and lead mine project.

A Look to the Future

The economy of the Northwest Territories is based on the primary resource industries of diamonds, gas, oil, gold and other minerals. Through exploration, research and innovation, there is huge potential to expand this resource base into new areas. Significant opportunities exist to add value to the region's primary products, diversify the economy, and to improve efficiency in processing resources.
The planned development of natural gas in the Northwest Territories combined with an expanding diamond industry will contribute significantly to the national gross domestic product. The Northwest Territories also has enormous stores of other precious and base metals that remain untapped for lack of adequate infrastructure and investment.

Opportunities exist in the renewable resources industry including forestry, fishing and fur harvesting, as well as hydroelectricity. Preliminary studies show that the Northwest Territories has the potential to generate more hydro power than Baie-James or Churchill Falls using modern run-of-river technology that will limit environmental impacts.