‹ Minerals

Projects on tap vs. GDP

May 20, 2013

Alaska’s Donlin gold project at $6.5 capital cost is the largest project likely in the north in the next 5 years. Yet in comparison to the Alaska GDP it is not that large.


Alaska has a much larger population, better infrastructure and training capacity than the Canadian territories. Ergo, a $6.5 B gold mine will easily be absorbed by the state economy.

Yukon’s large scale copper mine (compared to GDP) means the project will tend to push up its housing prices and cause labour shortages, if it goes ahead.

Nunavut lacks the local workforce to staff three large-scale projects within its boundaries. The upshot is that most of the workforce will have to be brought in from the south. The potential for rapid cost escalation must be a concern for the proponents.