Northwest line to boost economy
September 22, 2009 | Omineca Express
The Northwest Transmission Line along Highway 37 from Terrace to Meziadin Junction and Bob Quinn Lake is one step closer to reality.
While in Washington to meet with U.S. President Barack Obama Wednesday, Prime Minister Stephen Harper announced $130 million for the construction of the $404 million, 335 km power transmission line.
British Columbia Energy Minister Blair Lekstrom said the province committed to build the project in the recent throne speech, and is committed to follow through.
“We’ve made it very clear as we move forward with this agreement with the federal government that the electrification of Highway 37 will be a reality,” Lekstrom said. “We’re in discussion right now with some private sector developers in that region. The federal government said optimistically they’d like to see construction on this start in 2010. If everything lines up ... I’m optimistic that 2010 can be met.”
The provincial government previously allocated $10 million to conduct initial feasibility studies on the project. However, in 2008 the province backed out of building the project when NovaGold and Teck Cominco halted their plans to build a gold/copper mine at Galore Creek.
Galore Creek was expected to contribute $158 million toward the construction of the powerline.
The transmission lines would allow communities in the region to access the B.C. Hydro grid and stop relying on diesel generators for power.
In addition, the 287-kilovolt line has the potential to attract billions in investment from the mining and independent power production sectors.
In addition, Lekstrom said he has had some very early discussions with power producers in Alaska looking to link to the North America power grid.
In May the Northwest Powerline Coalition, a group of business and economic development organizations in the northwest, released a report identifying nine mining projects and six independent power production sites currently being considered in the region.
Affordable access to transmission lines is a key factor for those projects, the study said.
Northern Development Initiative Trust chairman Bruce Sutherland said the development of mines or power projects in the northwest will benefit the entire region.
“This is the best possible news at the best possible time,” Sutherland said. “It’s absolutely incredible news. This is something that will affect every community in the North.”
Northern Development has played a lead role in the Northwest Powerline Coalition. Sutherland said the trust has already had early discussions with groups looking to develop in the northwest.
“This is one of the biggest pieces. I would bet in the next few months we’ll something happening,” Sutherland said. “They’re going to get out there quickly. Nobody has pulled out entirely.”
Terrace Mayor Dave Pernarowski said he is confident the project will move ahead quickly.
“The provincial government has always wanted a private partner attached to this project. There is many private partners who are ready to step up,” Pernarowski said.
“Build it and they will come, and we’ll be waiting with open arms.”
(continued on page 2)
A lot of people have done a lot of work to make this happen, Pernarowski said. Prince George-Peace River MP Jay Hill, the current minister of state and government house leader, was “instrumental to introducing this project to his government colleagues,” he added.
Prince George Mayor Dan Rogers said it is critical for local governments across the North work together to be heard, and Northern Development, the Omineca Beetle Action Coalition and other organizations have allowed that to happen.
“We’ve been absolutely clear with the NDI board ... how important this is,” Rogers said. “(Prince George) plays a key role in northern B.C. from the supply sector perspective.”
Mining Association of B.C. president Pierre Gratton said the announcement makes the region more interesting to developers.
“We’ve got a dozen or so projects which become much more viable,” Gratton said. “Mines depend on basic infrastructure line power, roads and rail. Without them, we can’t take our product to market.”
It is government’s responsibility to provide infrastructure, he said, but the industry hasn’t, “shut the door,” on possible partnerships.
“When Galore (Creek) fell apart, people were looking for that big project that could do it all,” he said. “(But) there are many ways of addressing the cost issue, whether you pay up front or pay later. There are different ways that companies may be able to partner.”
Mines are energy consumers, Gratton said, so they pay into the system. Independent power producers sell into the system, putting them in a different position than mines.
“The point I think that is so important now is these conversations can be more than just speculation.”
The metal ore deposits in the northwest are desirable to investors currently, he added. Prices for gold reached over $1,000 per ounce earlier this month and copper prices have rallied since January to almost $3 per pound.
“Copper and gold, which a lot of these mines produce, are very viable at this time. The long-term forecast for basic metals like copper is very good.”
Prince George-Peace River MP Jay Hill could not be reached for comment as of press time.
