N.W.T. MLA concerned Snare hydro expansion to Whatì is 'subsidy' for nearby NICO project

A Yellowknife MLA is questioning whether a proposed transmission line connecting Whatì, N.W.T., to the Snare Forks hydroelectric facility is for the public good or is a way to help a nearby mining company lower its electricity costs.

Kevin O'Reilly wants to know why the government is looking to build a power line with a 13-megawatt capacity for a community that only needs 1.2 megawatts.

He wonders if the power line would act as a "subsidy" for Fortune Minerals Limited and its proposed NICO project — located 50 kilometres northeast of Whatì — that's hoping to mine cobalt, bismuth, gold and copper.

According to the company's president and CEO, Robin Goad, the mine will need 13.9 megawatts for regular operation, with a spike up to 18.9 megawatts when machinery starts up.

But Goad says calling the expansion a subsidy for the mine is "speculative." 

He says the company plans to power itself with LNG generation and diesel backups, and it isn't banking on a transmission line, though he did say Fortune Minerals would "welcome" anything that makes mining more competitive, depending on the power's price and carbon footprint.

Goad says the territorial government has not made an offer or power rate available to the company. 

Costs are 'ill-defined': O'Reilly

The territorial government's budget includes $5 million for feasibility work on the transmission expansion, but O'Reilly says the costs of the project are otherwise "ill-defined."

O'Reilly said he's not necessarily opposed to such a project, but wants the government to be transparent about its purpose, especially if public funds are going to be spent to improve the economic outlook of a private sector project.

"I'm trying to get to the bottom of what the project is all about," he said. 

The territorial Department of Infrastructure did not respond by deadline when asked for a cost estimate for the proposed 60-kilometre-long transmission line. 

But Finance Minister Robert C. McLeod said building a 13-megawatt facility is cheaper per megawatt than building multiple smaller projects.

McLeod said he will meet with department officials about the rationale for a larger project.  

Whatì ready to get off diesel: chief 

Chief Alfonz Nitsiza says connecting Whatì to hydro means his community can finally get off of diesel. He says people in the community are concerned about diesel fumes and noise. 

He said elders can't dry fish or meat in the winter or collect snow water because of the diesel generation.

"To connect to the grid is not that huge of a distance," he added. 

Nitsiza said he supports the 13-megawatt project to power Whatì and the NICO project, if it gets up and running. 

MLA's election rival on board for Fortune Minerals

It's not the first time O'Reilly has questioned the territorial government's dealings with the mineral industry.

His rival in the upcoming territorial election, Dave Ramsay, sits on the board of Fortune Minerals. Ramsay is also a former infrastructure minister.

O'Reilly had criticized Ramsay over a perceived conflict of interest during the one-year "cooling-off" period between the time an MLA leaves office and when they can accept certain appointments. 

O'Reilly said his concerns over the Whatì transmission line are unrelated to the election.

Meanwhile, Ramsay says he's not involved in the day-to-day operations of Fortune Minerals.

He says a transmission line would make a "world of difference" to the NICO mine, adding that any possible subsidy should trigger a discussion within the new government.

According to the territorial government's 2030 Energy Strategy, it wants to start initiating and building the transmission line to Whatì in 2021.