yukon population
in 2010
private vehicle visitation
up in 2009
mining development expenditures
approximated for 2010
The Yukon economy has continued to grow as a result of spending on construction projects, mineral exploration and development expenditures and increased mineral production.
Increased activity will be a primary contributor to growth in 2010. Yukon real GDP is expected to increase in the range of 3% to 4% in 2010. Initial production from the Wolverine and Bellekeno mines, combined with continued production from the Minto Mine and placer gold mining are expected to push the value of mineral production to about $320 million. This is significantly higher than the 2009 value of $251 million.
Construction activity on several large, non-mining projects will be a major contributor to economic growth in 2010. A number of these projects beginning in 2009 including the Whitehorse Correctional Centre, the Yukon Hospital Corp. Residence and Health Services building and the City of Whitehorse Public Safety Building.
Construction on the Mayo B hydroelectric project is expected to begin in the summer of 2010. The project cost is currently estimated at $120 million. Construction of the second phase of the Carmacks to Stewart transmission line commenced in 2009 and is expected to be completed in 2010 at a total cost of $40 million.
Despite the global economic downturn, Yukon’s mining sector continued its recent strong performance in 2009. Looking forward to 2010, continued interest in the White Gold area as well as mine development and mineral exploration activity associated with the Minto, Wolverine, Bellekeno, Rau, Casino, Brewery Creek and Selwyn projects are expected to drive mineral exploration expenditures higher than 2009 levels. Present expectations for 2010 have mineral exploration expenditures approaching the 2007 record high of $140 million.
Mining development expenditures for 2010 are expected to be approximately $150 million, primarily driven by work associated with Yukon Zinc’s Wolverine mining development and Alexco Resource Corp.’s Bellekeno project.
The value of mineral production is expected to total approximately $320 Million.
Strong prices for key minerals should benefit local producers and help maintain interest for further exploration and development of Yukon mineral resources.
In 2009, the Department of Tourism & Culture reported 282,874 visitors, a 5.7% decline in visitation over 2008. A total of 16,986 fewer visitors were reported in 2009, marking the second consecutive year of declining visitation. Notably lower visitation via motorcoach (down 18,709 visitors) was the major contributing factor to the total decline. Conversely, private vehicle visitation was up by 1,723 in 2009.
Based on current expectations for 2010, visitation to Yukon, as measured by international border crossings, is currently forecast to be flat in 2010.
Current estimates of Yukon oil and gas potential indicate onshore estimates of 17 trillion cubic feet of conventional natural gas and 790 million barrels of oil. Current estimates of offshore potential for the Beaufort Sea include 40 trillion cubic feet of conventional natural gas and 4.5 billion barrels of oil.
Production at Kotaneelee continued to decline in 2009, dropping to 60.9 million cubic metres from 75.9 million cubic metres in 2008.
Natural gas pipeline development remains a focus for the Government of Yukon with two projects: the Alaska Highway Pipeline Project and the Mackenzie Gas Project. Both of these initiatives have potential for development in the medium term. Two proponents, TransCanada PipeLines Limited (ExxonMobil) and Denali (BP and ConocoPhillips) are advancing the Alaska Highway Pipeline Project through ‘open seasons’ in 2010.
Outlook production forecasts from the Kotaneelee field continued to decline in 2009. There will be a continuation of pre-development work related to the Alaska Highway Pipeline project with completion of TransCanada’s "open season" expected by July 30, 2010. The National Energy Board’s issuance of Reasons for Decision on Mackenzie Gas Project is expected in September 2010.
