Question Period Note: Support for Northern Mining Industry

• The Government supports mining industry workers and their families.

• The Government is responding to the challenges posed by the COVID-19 pandemic. Wage assistance, emergency response payments, and small business relief aid is flowing to meet critical needs.

• Canada is in discussions with provinces, territories, Indigenous governments and industry. We will continue to adapt to the crisis and prepare for the recovery to ensure that mining continues to support the social and economic development of Canada’s North.

Background

• Mining is the foundation of the economy in northern Canada, with operating mines and exploration in all regions and territories. The current COVID-19 crisis is severely affecting the northern mining sector, including the employment of over 1000 local Inuit employees.
• The mining sector is made up of three distinct sub-sectors with different structures. The largest sector is the operating mines. These have largely continued to function but with significant operational changes to allow for the application of COVID-19 health and safety measures. The supply sector relies on major mines and has been affected in the same manner as the operating mines. Lastly, the exploration sector has largely ceased its operations due to the pandemic and travel related constraints.
• The mining sector produces over $3 Billion in minerals annually and is the largest private sector employer and contributor to the gross domestic product in all three territories. It provides over 10,000 direct and indirect jobs, produces over $3 billion in annual business spending, and generates important tax and royalty revenues to public, Indigenous governments and Inuit organizations across all three territories.
• Mining is the largest private sector employer of Indigenous people in the North. In Nunavut, 97.5% of residents who work in the industry in the territory are Indigenous and 52.5% of residents in the Northwest Territories.

The need to expand the wage subsidy
• We recognize that mining is the economic backbone of northern communities. We know that the current COVID-19 crisis is severely affecting the northern mining sector, including the employment of over 1000 local Inuit employees.
• The Canada Emergency Wage Subsidy supports employers that are hardest hit by the pandemic and discussions are continuing to address the unique situations of northern communities and its residents.
• We are committed to ensuring that mining continues to support the social and economic development of Canada’s North.