Economy
As the largest city in the Northwest Territories, Yellowknife is the hub for mining, industry, transportation, communications, education, health, tourism, commerce, and government activity in the territory. Historically, Yellowknife's economic growth came from gold mining, and later government; however, because of falling gold prices and increased operating costs, the final gold mine closed in 2004, marking a turning point for Yellowknife's economy.
After a downturn in the 1990s during the closure of the gold mines and the downsizing of the government workforce in 1999, Yellowknife's economy has recovered, largely because of the diamond boom; the Ekati Diamond Mine, owned and operated by BHP Billiton, opened in 1998. A second mine, Diavik Diamond Mine, began production in 2003. Production from the two operating mines in 2004 was 12,618,000 carats (2,524 kg; 5,564 lb), valued at over C$2.1 billion. This ranked Canada third in world diamond production by value, and sixth by weight. A third mine, De Beers' Snap Lake Diamond Mine, received final approval and funding in 2005 and went into production in 2007. De Beers also applied in 2005 for a permit to open the Gahcho Kue Diamond Mine Project on the property formerly known as Kennady Lake. Upon receipt of approval, construction is expected to start in 2010 and the mine will reach full production by 2012. As well, growth and expansion in natural gas development and exploration sectors has contributed to this growth. Economic growth in the Northwest Territories was 10.6% in 2003.
The major employers in Yellowknife include: the Territorial Government, the Federal Government, Diavik Diamond Mines Incorporated (a subsidiary of Rio Tinto Group)/Harry Winston Diamond Corporation, BHP Billiton, First Air, NorthwesTel, RTL Robinson Trucking, and the City of Yellowknife. Government employment accounts for 7,644 jobs, a large percentage of those in Yellowknife.
During winter, the Tibbitt to Contwoyto Winter Road is opened for semi-trailer truck traffic to take supplies from Yellowknife north to various mines located in the Northwest Territories and Nunavut. This ice road is usually open from the end of January through late March or early April, and Yellowknife becomes the dispatch point for the large number of truck drivers that come north to drive on the ice roads. During the 2007 ice road season, several drivers were featured on the History Channel TV series Ice Road Truckers.
Tourism is the largest renewable industry in the NWT and Yellowknife is the main entry point for visitors. Many of these tourists are Japanese, and come to experience the Northern climate and traditional lifestyle, as well as to see the Northern Lights. In 2004-05, visitors to the territory spent C$100.5 million.
The City of Yellowknife raises 50% of its operating revenue through property taxation. Yellowknife School Districts also raise a portion of their operating revenue through property taxation. Property taxes in Yellowknife are calculated through property assessment and the municipal and education mill rates. Mill rates in 2005 were 13.84 (residential) and 19.87 (commercial).
Canadian North, a regional airline, is headquartered in Yellowknife.
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Famous quotes containing the word economy:
“War. Fighting. Men ... every man in the whole realm is in the army.... Every man in uniform ... An economy entirely geared to war ... but there is not much war ... hardly any fighting ... yet every man a soldier from birth till death ... Men ... all men for fighting ... but no war, no wars to fight ... what is it, what does it mean?””
—Doris Lessing (b. 1919)
“Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
—Henry David Thoreau (1817–1862)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)