Debates of October 18, 2005 (day 12)

Mahsi, Mr. Speaker. Mr. Speaker, my question is also directed to our honourable Premier, Joe Handley, in regards to the Taltson expansion project. I know the government has recently approved something to the tune of $1.4 million toward the environmental and geotechnical work that the Taltson expansion project is to undergo. I just want to ask the Minister, I guess, from his last dealings with industry with respect to getting them to hook into this Taltson expansion project, what is the status of those current negotiations today, and where does the government stand on that issue? Thank you, Mr. Speaker.

Thank you, Mr. Villeneuve. The honourable Premier, Mr. Handley.

Return To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Thank you, Mr. Speaker. There is certainly interest in the possibility of hooking into hydro power by the existing mines, as well as the one that’s under construction. There have been regular meetings going on as recently as last Friday. There was a meeting between our officials and the Power Corporation and the representatives of all three diamond mines: Ekati, Diavik, and DeBeers. They are looking at the economic viability of it. Of course, the mines will participate, both for environmental reasons as well as cost, as long as this is something that is favourable to their bottom line, as well. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Villeneuve.

Supplementary To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Thank you, Mr. Speaker. I guess, just from looking at the mines’ bottom line, we have a lot of room to play here. I was just wondering if the Premier could let me know, and maybe let the House know, who is on this negotiating team, and if this team has anybody representing the Akaitcho Territory and the South Slave Metis and Lutselk’e and Deninu Kue First Nations. Is there anybody on that negotiating team, along with the Power Corporation, to negotiate with the mines? Thank you, Mr. Speaker.

---Applause

Thank you, Mr. Villeneuve. The honourable Premier, Mr. Handley.

Further Return To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Thank you, Mr. Speaker. The individuals who are doing the work on our behalf -- and at this point it is not formal negotiations, but more looking at the detail, the complexities of it, the issues, and, of course, trying to arrive at a bottom line of the viability -- is made up of a number of senior officials, including the deputy minister of ITI, the president of the Power Corporation, a representative of the Energy Corporation, which is a subsidiary of the Power Corporation, and Lew Voytilla, who is with our Financial Management Board Secretariat. Mr. Don Balsillie was also at the meeting and participating, and I’m not sure exactly his capacity and who he is representing at the meetings. Yes, there was a representative in Don Balsillie. Thank you.

Thank you, Mr. Handley. Supplementary, Mr. Villeneuve.

Supplementary To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Thank you, Mr. Speaker. I guess my next question would be with the development of the negotiations or how they’re proceeding. I know they’ve been going on here for the last year or so, and there doesn’t seem to be any tangible results coming out of the work that’s being done. Given the rising energy costs, it would seem more attractive to the mines that they would hook up into something that would be beneficial both environmentally and on the revenue side for them. I just want to ask the Premier if he would be willing to get his team, the deputy minister and these four other individuals, to maybe take a harder stand toward industry and actually, given the government’s perspective and what the government wants to do for the people, demand that the mines hook up. I don’t know why there’s even ongoing negotiations with that. I think it should be something that should be a given, given our…

Thank you, Mr. Villeneuve. I’ll allow the Premier to answer that. Mr. Premier.

Further Return To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Thank you, Mr. Speaker. Yes, we are working with the mines. We cannot require them to hook up to hydro power until we know that we have a viable project and can deliver the hydro power to them. To do that, we need to do several things. One is to complete a memorandum of intent with our aboriginal partners whose traditional lands the project will be situated on. The second is, we need to continue with further environmental and engineering studies to make sure that the project is viable in that respect. We also have to look at a lot of other economic issues. Mr. Speaker, I expect that by this spring we will have all of those pre-engineering, pre-environmental studies done and, at that point, should be able to go to the next step, which would be to go for an application for environment permitting, environmental assessment process. It is only after we get that, and have a project, that we could then require the mines to buy in. Until then, Mr. Speaker, I can tell this House that the mines are very interested in the project and are working with us on it. Thank you.

Thank you, Mr. Handley. Final supplementary, Mr. Villeneuve.

Supplementary To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Thank you, Mr. Speaker. It is good to hear that the mines are very interested. I guess I just wanted to point out in this review of electrical generation transmission and distribution in the NWT that came out in 2000, that there are things in this report that point to a lot of economic viability options of why we should convert to electrical and hydro generation here in the NWT on all fronts. I don't know if we should do any more review on this front, because it seems to be a pretty comprehensive report that has been developed by this government.

I just want to ask the Premier, as far as finding some agreeable solutions to allow the mines to hook up or not hook up, before the environmental and geotechnical work gets done, can we work side by side to ensure that, yes, they are going to hook up and, yes, we are doing the environmental work, and we are going to spend the money on doing that, and that money is going to bring the mines into the picture? Is there any kind of commitment that we can get from the Premier on that end? Thank you, Mr. Speaker.

Thank you, Mr. Villeneuve. The honourable Premier, Mr. Handley.

Further Return To Question 147-15(4): Proposed Taltson River Hydroelectric Expansion Project

Mr. Speaker, let me first say that the report that the Member is referring to is a broad report on the benefits of hydro power and the viability and the potential in the Northwest Territories. There is no stronger advocate of that than myself and our government. The studies I am referring to are specific to the Taltson project. We need to have lot more information there.

Mr. Speaker, as soon as we have the information that is necessary over the next few months, we intend to enter into, what we call, firm power purchase agreements with the mines. Before we do that, we have to make sure that we are not selling our future away for half its value, or that we are not entering into something that we cannot deliver on. We have to do this basic background work first, but the intention is to enter into the memorandum of intent with the aboriginal partners, then enter into firm purchase power agreements with the mines and, of course, do the environmental and engineering work, as well.

Mr. Speaker, we are working on this. It may seem as though little is happening, but there is a lot happening in the back rooms in getting this project underway. Thank you, Mr. Speaker.