Northwest power line worth $15 billion: study

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Northwest power line worth $15 billion: study

Establishing a high-voltage transmission line in northwest British Columbia could attract at least $15 billion in new investment in mining and power generation for the remote region, according to a new study.

The study, commissioned by the Mining Association of B.C., says a power line along the Highway 37 route in B.C.'s distant northwest has the potential to create more than 10,000 new jobs, allow new green power projects to link to the provincial transmission grid, and annually generate $300 million in new tax revenue.

The report was released just as Premier Gordon Campbell announced to the Union of B.C. Municipalities in Penticton Friday that the provincial government will invest $10 million to restart the environmental assessment process for the line.

Mining Association of B.C. President Pierre Gratton applauded the government's move, noting that the assessment is an essential first step in any development of the line.

The $400-million power line near Telegraph Creek has been stalled since Teck Cominco and NovaGold announced in November 2007 that the cornerstone development for the project, a proposed gold mine at Galore Creek, needed a substantial financial review.

When Galore Creek stalled, a promised $158-million contribution to the power line was also put on hold, and so far the provincial government has spurned calls from the mining association to assume full development costs and recover the money later.

"The electrification of Highway 37 is an important part of the ongoing economic diversification of rural British Columbia," Campbell said in a news release. "It builds on the success we're already seeing in the northwest, including the new container port in Prince Rupert, the resurgence of the mining industry and the potential new Alcan smelter. We're making the investments needed now to continue that growth and help communities seize opportunities to diversify and create jobs."

The new 287-kilovolt line will extend 335 kilometres from Terrace to Meziadin Junction and north to Bob Quinn Lake, providing access to the electricity grid for customers while supporting the economic diversification of the area, according to the news release.

Currently, the electrical power grid along Highway 37 ends at Meziadin Junction to the north and Stewart to the west.

"We have the potential to create more than 10,000 jobs in a region where unemployment is high," Janine North, CEO of the Northern Development Initiative Trust, said in the news release. "Electricity can spur economic development through mining, tourism, clean power, transportation and supply industries in the northwest."

ssimpson@vancouversun.com

© Vancouver Sun 2008

Northwest power line could create thousands of jobs, attract billions in investment – Study

Northwest power line could create thousands of jobs, attract billions in investment – Study

- Power line along Highway 37 could create 10,700 jobs
- Potential for $15 billion in capital investment
- Improves access to clean electricity sources
- Potential benefits include more than $300 million in annual tax revenues to governments

Vancouver – According to a new report by the Mining Association of British Columbia (MABC), building a power line along Highway 37 in northwest B.C. has the potential to create thousands of jobs, generate new sources of clean power and provide additional revenues to government to help pay for important programs and services.

“A new power line has the potential to spur economic development in mining, tourism and clean power projects,” said Pierre Gratton, president and CEO of the Mining Association of B.C. “The findings of the report provide a strong case for First Nations, the provincial government, industry and communities to work together to make the power line a reality.”

The study, MABC Report on the Electrification of the Highway 37 Corridor, cited ten potential mining projects in the study, and found that the power line has the potential to attract more than $15 billion in investment, create 10,700 jobs and generate $300 million in annual tax revenues to governments.

Demand for power in the northwest is driven largely by the mining sector, independent power projects and regional municipality growth, with additional opportunities to revitalize the tourism sector.

“We have the potential to create more than 10,000 jobs in a region where unemployment is high,” said Janine North, CEO of the Northern Development Initiative Trust. “Electricity can spur economic development through mining, tourism, clean power, transportation and supply industries in the northwest.”

“In principle, we support the new power line, as it provides opportunities for joint ventures with First Nations,” said Bill Adsit, President of the Tahltan Nation Development Corporation. “However, first there must be a process that considers all potential social, cultural and environmental impacts.”

“As one of the founding members of the Highway 37 Coalition, the Gitxsan Hereditary Chiefs are longstanding supporters of the proposed power line,” stated Chief Negotiator Elmer Derrick. “This study confirms that work should continue towards this important project.”

News Release, MABC, 26-Sep-2008

Download report

B.C. to move forward with northwest transmission line

PENTICTON – Premier Gordon Campbell has announced the Province will immediately start the environmental assessment process and First Nations consultation on the Northwest Transmission Line along Highway 37. This is the first step towards building a powerline that has the potential to generate billions of dollars in capital investment, create thousands of new jobs and open economic opportunities on a global scale in the Northwest.

“The communities in the North have a vision to further open their region to economic opportunities on a global scale, and today I want them to know that we share their vision and we are going to pursue the Northwest Transmission Line,” said Premier Campbell, who made the announcement during his annual Union of B.C. Municipalities address. “According to the Mining Association of BC, this project has the potential to attract $15 billion in new capital investments and create almost 11,000 jobs, as well as reduce greenhouse gas emissions by decreasing the reliance on dirty diesel-electric power for industry and communities in that region.”

The Province will invest the estimated $10 million to immediately restart the environmental assessment process, the first step towards building the Northwest Transmission Line (NTL). The new 287-kilovolt line will extend 335 km from Terrace to Meziadin Junction and north to Bob Quinn Lake, providing access to the electricity grid for customers while supporting the economic diversification of the area. Currently, the electrical power grid along Highway 37 ends at Meziadin Junction to the north and Stewart to the west.

“The electrification of Highway 37 is an important part of the ongoing economic diversification of rural British Columbia,” said Premier Campbell. “It builds on the success we’re already seeing in the Northwest, including the new container port in Prince Rupert, the resurgence of the mining industry and the potential new Alcan smelter. We’re making the investments needed now to continue that growth and help communities seize opportunities to diversify and create jobs.”

The environmental assessment is the first stage of the project and must be complete before construction begins. The Province is still seeking a partnership with the private sector to fund the total project, which is estimated to cost approximately $400 million.

Gross mining revenue in B.C. has nearly doubled over the last seven years, from $3.6 billion to nearly $7 billion, and 10 new mines have opened in that time. Investment in mineral exploration soared to a record high of nearly $416 million in 2007, up 1,300 per cent since 2001.

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Media contact:
Bridgitte Anderson
Press Secretary
Office of the Premier
604 307-7177

News Release, Office of the Premier, 26-Sep-2008