October 15, 2008

British Columbia government revives Northwest Transmission Line plan

Richard Gilbert

staff writer

The B.C. government is moving forward with a plan to build a power line that could boost economic development in the northern part of the province.

Construction at the Galore Creek copper-gold-silver mine was suspended by NovaGold Resources Inc. and Teck Cominco Ltd. last year after the first season of work was completed.

The government agreed to split the cost of building the Northwest Transmission Line along Highway 37, with the mine owners, who intended to invest $158 million into the $400 million project.

However, the plan was put on hold when construction was halted.

Premier Gordon Campbell announced late last month that the government is investing $10 million to immediately restart the environmental assessment process and First Nations consultation on the transmission line project.

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.

The announcement was welcomed by the Northwest Power Line Coalition and the Mining Association of B.C., which released a study on the potential impact of the power line.

The study, MABC Report on the Electrification of the Highway 37 Corridor, cited ten potential mining projects.

It found the power line has the potential to attract more than $15 billion in investment.

It could create 10,700 jobs and generate $300 million in annual tax revenues.

“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 study points out that development of new mines in the region would be dependent on a number of factors.

These include the completion of feasibility studies, the continued strength of commodity prices and the availability of affordable electric power.

Such development would also need to address the concerns of First Nations.

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 project.

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