Oil and gas industry
First of all, the increased research and exploration by the oil and gas industry of Canada (1950s) resulted in breakthroughs in the industry. It resulted in the formation of Pan-arctic Oils Limited and the discovery of a huge oil field at Prudhoe Bay in the years 1967 and 1968 respectively. The Canadian Diamonds Mining projects are an example of successful ventures in the mining industry. The high value of the produced diamond, sustainability of the project, environmental friendliness, and creation of employment opportunities is a measure for the success. The Ekati Diamond Mine which was the first diamond mine in Canada has had no significant adverse effects on the environment, while at the same time, provided 39% of aboriginal employment. Therefore, the benefits that have accrued from the project are numerous and include; creation of employment opportunities, improved infrastructure, and development of urban areas. Self-reliance has been achieved in these areas because the local population takes part in the mining activities and earns a living to support their families.
On the other hand, numerous future challenges are associated with the oil and gas mining industry. As seen in case study 1: Nanisivik 1976 – 2002; Polaris 1981 – 2002; and Lupin Zinc mines, most of the mining establishments may run for a limited time. Therefore, it is quite unrealistic to engage in a mining operation that will affect the current developments such as towns, yet the operations last for only a decade or two. Furthermore, other mines have a history of over-riding problems as depicted in the high-rates of seepage in Colomac Mine Dam (Case 2) and environmental risks posed by the Giant Mine. In the future, such occurrences are expected but should be addressed in an economical and environmentally friendly way. For easier transportation of minerals, efficient infrastructure should be provided to link the mines to destination markets. A present example in case 4, shows remotely located Zinc Mines that need efficient rail and road infrastructure. This present condition means that future oil and gas mining operations may be faced with the need of opening up remote mines at an extra cost.
Also, the construction of the Mackenzie Valley Pipeline was linked to the construction of enormous roads, airports, towns, and a maintenance base to serve the facility. As such, the developments are associated with negative impacts on people’s settlements, animals, and possible land dereliction. Some of the issues that arise revolve around territory trespass, displacement, and environmental pollution which are major drawbacks even in future operations. Investigations should be conducted on oil and gas mining operations to address their sustainability and influence on the natural environment.
Self-sufficiency of the region
Self-reliance is a state where one is independent in his or her undertakings and can stand in a position to protect one’s resources within the area of existence. The creation of Nunavut has encouraged self-reliance among the existing population through various ways as discussed in the following paragraphs.
Firstly, the activity practiced by the people of Nunavut in Arctic mining is a good gesture of self-reliance. The deepwater port that exists in the Arctic region of Nunavut is used as an Arctic Naval Base. For easier transportation of mineral material further inland and abroad, smaller towns in the mineral areas have even been removed to allow for mining operations and room for the creation of Airport facilities. Therefore, mineral products can be exported to purification areas and exported to other countries for foreign exchange. For example, the discovery of a zinc mine (1981 – 2002) created employment opportunities for more than 250 people in the region.
Secondly, mine reclamation is practiced to ensure all the land remains environmentally friendly. An example area requiring mine reclamation is the Tailings areas that contained high cyanide waters which are now contaminated with ammonia. The Colomac Main dam has a high rate of seepage making the construction questionable. To have an environmentally friendly solution to the problem, the community people and federal government propose enhanced natural removal plus water management for $8 to $20 million.
Lastly, the Nunavut people ensure that they join sustainable mining agreements where they can benefit from gaining future royalties. All these practices coupled with the need for investing in the mining activities for future developments give the Nunavut people a reason for being self-reliant.
Cost of operating a Canadian diamond mine
The biggest cost of operating a Canadian Diamond mine is; b) Diesel Fuel. This happens as a result of an excessively warm winter that leads to Fuel shortages.