Canada chips in for northwest power line

The Canadian government has approved C$130 million in funding for construction of the Northwest Transmission Line in northern British Columbia, a power conduit that could eventually connect with Alaska.

The 335-kilometer transmission line will carry hydroelectricity to communities in the northwest region of the province, and provide a clean and reliable source of power, while enabling development of an estimated 2,000 megawatts of renewable electricity generation from small hydro, geothermal and wind sources.

"Our government is supporting environmentally sound infrastructure and initiatives that promote cleaner, greener energy," Canada Prime Minister Stephen Harper said Sept. 16 in a statement. "The Northwest Transmission Line will facilitate the development of green energy and help provide British Columbia's northern and remote communities with more sustainable and affordable power."

Blair Lekstrom, British Columbia's Minister of Energy, Mines and Petroleum Resources, hailed Harper's announcement as recognition by the federal government of the importance of the Northwest Transmission Line.

"We are pushing ahead with the C$404 million NTL that will open mining and energy opportunities in the northern part of the province," Lekstrom said in a concurrent statement. "NTL will help communities in the region transition away from diesel generation and reduce greenhouse gas emissions."

Line has Alaska connection

This is an important step toward building a power line 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, he said.

British Columbia has committed C$250 million to the project and already has invested C$10 million to support its environmental assessment and the First Nations consultation process. The new 287-kilovolt line will extend 335 kilometers, or 208 miles, from Terrace to Meziadin Junction and north to Bob Quinn Lake, providing access to the electricity grid for customers while supporting economic diversification in the area.

The project is also a key step in a potential interconnection between Southeast Alaska and the North American transmission grid via British Columbia.

In February, Harper and President Obama launched the Clean Energy Dialogue.

They discussed a progress report Sept. 16 on the Dialogue, focusing on clean energy research and development, a more efficient energy grid, and carbon capture and storage. The prime minister also highlighted a number of new projects that demonstrate progress on these discussions.

"Our government is pursuing joint projects with President Obama and his administration. Our government is taking action to promote cleaner energy use," Harper said.

Industry applauds funding

Association for Mineral Exploration BC commended Harper for funding the transmission line, citing the tremendous mineral development potential in northwestern British Columbia.

"As one of the 74 members of the grassroots Northwest Powerline Coalition, we see this as exciting news for British Columbia and Canada," said Gavin C. Dirom, president and CEO of the AME BC. "This federal investment, combined with the strong commitment and leadership shown by Premier Gordon Campbell, will bring great returns for all Canadians," said Dirom. "There is potential for $15 billion in private investment, almost 11,000 jobs, and $300 million in annual government revenues through the development of new mines."

In October 2007, the B.C. government committed C$250 million to extend the provincial power grid along the Highway 37 corridor. Premier Gordon Campbell later announced C$10 million for the engineering, environmental assessment and aboriginal consultation for a power line.

At AME BC's Mineral Exploration Roundup conference in January, Campbell said that he would work to get potential federal funds applied to the construction of the power line.

Mining companies with projects in northern British Columbia also applauded the funding announcement.

Imperial Metals Corp., for example, said it welcomed the news that the Government of British Columbia and the Canadian federal government have joined forces to push ahead with the Northwest Transmission Line along the Highway 37 corridor in northwest British Columbia.

"Construction of the power line will set the stage for many important economic and social initiatives, including development of Imperial's Red Chris copper-gold porphyry project near Iskut, bringing much-needed jobs and economic activity to northwest British Columbia, the miner said.

The Red Chris deposit contains about 276 million metric tons of minable reserves at 0.349 percent copper and 0.266 g/t gold (based on the 2005 Red Chris feasibility study). The project's anticipated mine life is 25 years with known reserves and a production rate of 30,000 metric tons per day. Construction of a mine is expected to take two years and generate 600 jobs. During the mine's life, operations would require 250-300 direct jobs with an additional 750 indirect jobs.

Hard Creek Nickel is another miner that hopes to obtain inexpensive power provided by the Northwest Transmission Line in northern British Columbia. Its Turnagain project is located about 70 kilometers, or 42 miles, east of Dease Lake, the northern extension of the proposed 287- kilovolt power line. It hosts an estimated resource of about 580,000 metric tons of recoverable nickel, enough to produce 44 million pounds of nickel annually for 29 years.