BACKGROUND

• Nunavut officially became a territory of Canada on April 1, 1999. Its creation was the result of more than 30 years of negotiation between the Inuit of the Eastern and Central Arctic, the Government of the Northwest Territories and the Government of Canada.
  
• Nunavut has a mixed land-based and wage economy.
  
• The land-based economy contributes significantly to Nunavut, with its value estimated to be in the range of $40-$60 million.
  
• Intrinsic to Nunavut's economic strategy is the incorporation of the principles of sustainable development and Inuit Knowledge (Inuit Qaujimajatuqangit).
  
• Nunavut's population is the youngest in Canada, with 60% of its residents under age 25.
  
• Population numbers currently are low, with the Territory's estimated 28 000 residents dispersed in 26 communities.
  
• One of the territory's challenges is the lack of well-developed infrastructure. There currently are no road linkages between communities. As the population grows there will be an increasing need to further develop infrastructure, particularly in key areas like housing and waste management.
  
• The 1999 value of Nunavut's real expenditure-based Gross Domestic Product (GDP) was $682 million. The Conference Board of Canada is forecasting the real GDP to expand by an average of 2.42 %, compounded annually, from 1999 to 2020. The fastest growth period is expected to come in the Territory's first 10 years of existence due to the activities surrounding the creation of Nunavut. Mining, tourism, and fishing are sectors with the largest potential.
  
• Figures for 2000 show a positive economic climate for the territory. Nunavut showed a GDP growth of 4.5%. Mining grew by 10.1%. Much of the GDP growth can be attributed to the significant increase in construction within the territory. Investment in non-residential construction by the government more than doubled.
  
• Some of the more noteworthy projects included the completion of the Nunavut Legislature Building along with elementary and secondary schools.

  FISHING, HUNTING AND TRAPPING

• In 1999 commercial fishing, hunting and trapping industries contributed $7.6 million to the wage-based GDP.
  
• The major commercial fishing operations are turbot, shrimp and char.
  
• Turbot industry activities contribute to seasonal employment, in the range of 100 jobs. This accounts for between $2.1 million and $2.4 million in income for residents.
  
• In 1999 Nunavut was allocated a quota of 1,750 tonnes for pink shrimp fishing activities. Offshore licenses were also granted by a regional Inuit organization.
  
• This quota amounted to between 2,500 and 3,000 tonnes annually. The value of this ranges from $15 million to $25 million. Seasonable employment in the shrimp industry provides about 50 jobs and between $1.8 million to $2 million in wages.
  
• At Keewatin Meat and Fish at Rankin Inlet 2,200 caribou were processed from the largest commercial caribou hunt, in Coral Harbour. Close to 40 residents of Coral Harbour are employed for the hunt.
  
• The Musk ox hunt in the Kitikmeot region has employed close to 32 people and contributes about $160,000 to the economy.
  

  OIL AND GAS

• In 1999 the mining industry contributed $129.9 million to the GDP.
  
• Nunavut encompasses 1/5th of Canada. Its coastline is one of the longest in the world, much of which experiences 4-12 months of land-fast sea ice
  
• Petroleum resources in the territory account for 5% of Canada's known oil reserves valued at approximately $10 billion and 15% of Canada's known natural gas valued at some $70 billion.
  
• There are seven sedimentary basins in the territory. The Sverdrup basin is the largest and most significant petroleum basin in Nunavut.
  
• The Franklinian-Arctic platform has seen fifty wells drilled. It also was the site of the Bent Horn. This was the only production oil well in Nunavut, active from 1985-
• 1996. In that time 449,000 m3 of oil was produced. This unrefined oil was burned in diesel generators at the Polaris mine and in Resolute Bay. In 1996 Bent Horn was closed and the site reclaimed.
  
• The Northeast Continental Margin (Baffin bay/Davis Strait) has had 3 wells drilled and has been the site of Hecja gas discovery. There has been recent exploration of the Greenland side, with seismic planned for 2001.
  
• Nunavut's known reserves are based on information from 160 wells. There is significant potential in undiscovered reserves.
  
• In 1972 a consortium, the Polar Gas Pipeline Project was formed to build a pipeline to move gas form the Sverdrup to Southern Ontario. While never realized, it was planned to bring gas from King Christian Island and Drake Point fields. The route would cross Bathurst Island to Resolute Bay and down to Somerset Peninsula across the Keewatin.
  

  ARTS AND CRAFTS

• For most residents activities in arts and crafts are seen as an income supplement as opposed to a full-time endeavor.
  
• This sector is estimated to contribute $20 million to the economy.
  
• The 1999 Nunavut Community Labour Force Survey showed that 27% of the population is involved in producing arts and crafts.
  
• There are many businesses active in marketing arts and crafts. Because of the significant growth potential in this sector the Nunavut government is interested in the expansion of arts and crafts, specifically with stone carving.
  

  TOURISM

• In 1999 tourism was estimated to have contributed $35.7 million to the economy in the territory. This represents 4.8% of the total market GDP.
  
• An estimated 18,000 people visited Nunavut in 1999; of those numbers almost three-quarters were business visitors.
  
• There are over 123 tourism operators in Nunavut with approximately 500 people working in the parks and tourism industry.
  
• Close to 39% of tourists visit either national or territorial parks while in Nunavut.
  
• The cruise ship industry is an area of potential growth in the tourism sector. Cruise ships currently visit communities such as Pond Inlet, Kimmirut and Pangnirtung. These visits have resulted in approximately $5,000 being spent in the community.

  For more information:
  Government of Nunavut Communications
  Iqaluit NU Canada
  Tel (867) 975-6000
  Fax (867) 975-6099