Since the division of the former Northwest Territories into Nunavut and the current NWT in 1999, the NWT has grown by a cumulative 88% in real terms. This exceptional growth is the highest in the North and in Canada as a whole. The NWT’s economy is expected to continue growing in 2007.

Much of the NWT’s economic growth can be attributed to its burgeoning non-renewable resource sector – in particular diamond mining. With mineral commodity prices continuing to hold their value, interest in the NWT’s non-renewable resource sector is expected to expand. According to an NWT publication, “This interest is clearly evident in the diamond sector, where two diamond mines already in production have made Canada the world’s third largest producer of diamonds by value. Construction of the NWT’s third mine, Snap Lake, has already begun, with operations scheduled to start in 2007. The applications for permits to construct and operate a fourth diamond mine at Gahcho Kue (Kennady Lake) were filed in late November 2005.”

On the horizon is the potential of the multi-billion dollar proposed Mackenzie Valley Gas Pipeline Project. The project is currently in the regulatory review process but if approved, it will significantly bolster the NWT economy by providing added jobs in the construction phase as well as opening up further exploration and development potential of the NWT’s vast oil and gas resources.

Other important sectors include the growing potential for resource development such as tourism, hospitality, trapping and related economic activities. Thousands of Japanese tourists continue to flock to the NWT to view the impressive northern lights. Wildlife and cultural tourism companies are doing a brisk business by providing eco-tours, sports hunting venues, sports fishing and cultural experiences to people from around the world. For local economies these are very important economic activities as they create meaningful employment opportunities that involve local people and resources.

The Honorable Floyd Roland is the Deputy Premier of the NWT and Finance Minister. Mr. Roland delivered a very optimistic budget speech that outlined his government’s view of the future of the NWT to the people of the NWT. Here are a few of Mr. Roland’s comments, “Many of us have looked ahead with hope to the day when the Northwest Territories would be self-reliant and strong, with a thriving economy, jobs and opportunities for our people. Today, those are no longer just dreams. We’re on the brink of tremendous economic opportunities – opportunities that will test our imagination and our ability to respond. Opportunities that will transform the Northwest Territories into a key economic driver, not only for the North, but for all of Canada. The Northwest Territories is poised to become a leading player on Canada’s resource development scene. The demand for our energy resources has never been greater. The Mackenzie Valley Pipeline – once a far-off dream – is on the verge of becoming a reality. Public hearings have already begun. If approved, it will open the doors to the vast natural gas reserves in the Mackenzie Delta and Beaufort Sea. Our two diamond mines have made the Northwest Territories the third largest producer of gem quality diamonds in the world. Now a third mine is under construction and a fourth is in the approval stage. These economic developments will not only create jobs and business opportunities, they will bring new hope and opportunities for our people. They will allow self-reliant individuals and families to share the rewards and responsibilities of healthy communities and a prosperous and unified Northwest Territories. They will provide the resources for us to invest in infrastructure, give our children the best possible education, improve our health system, preserve our environment, and build stronger communities.”

As the NWT continues to advance its social and economic agenda other important issues to be worked out include: implementation of Land Claims Agreements; negotiation of Self-Government Agreements; negotiation of Devolution and Resource Revenue Sharing, negotiation of outstanding Aboriginal Land & Resource Agreements. As it stands at the present, the NWT can be considered as a colony within Canada mainly due to the fact that it is the federal government that ultimately controls the administration of lands, water and natural resources in the NWT. Once the Devolution and Resource Revenue Sharing arrangement is worked out – watch the NWT blossom into the “have” jurisdiction that Premier Joseph Handley has often spoken of. One thing is for sure, the vast NWT land and water mass is full of mineral, oil and gas resources, which - if commodity prices remain stable or grow, will propel the NWT on an upward growth cycle well into the future.

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