Northwest Territories

Northwest Territories spans 1.3 million km² with population of 45,000—density so low that meaningful economic geography barely applies outside Yellowknife. The capital hosts territorial government and services; scattered communities maintain traditional hunting and fishing economies supplemented by transfer payments. Diamond mining transformed territorial finances when production began in 1998, but the industry now faces decline as major deposits deplete.

The Diavik and Ekati diamond mines established Canada as a significant producer, but neither will operate indefinitely. Mineral exploration continues—rare earth elements, critical minerals—but replacement deposits at commercial scale remain uncertain. The territory produces small amounts of natural gas and has petroleum potential, though the Mackenzie Valley Pipeline project collapsed after decades of regulatory delays.

Climate change reshapes possibilities. Warming temperatures extend ice-free seasons, potentially enabling shipping through the Northwest Passage and opening areas to mineral exploration. Permafrost thaw threatens infrastructure while creating adaptation costs. Indigenous land claims and co-management agreements complicate development, requiring community consent that past resource extraction often ignored. Whether the territory can develop sustainable economic base beyond resource extraction—or remains transfer-dependent—defines its future.