Ottawa Moves to Expand Footprint Over Territory's Natural Resources Before Its Rival Russia Does.As global interest in Arctic exploration explodes, Canada is pushing to assert rights over a larger chunk of the polar region and lure companies to exploit the territory's promising natural resources.
The government of Prime Minister Stephen Harper has long
engaged in saber-rattling with Russia—Canada's biggest Arctic rival—over
territorial claims in the region. Both sides have recently sent troops to the
Arctic to back up their claims, with Canada winding down its largest, and
northernmost, military exercise this month.
During a trip late last month to Canada's Far North, Mr.
Harper criticized Russia in an interview with The Wall Street Journal,
portraying its strategy in the region as aggressive and "a
disappointment." But he said Russia's actions—including alleged incursions
into Canada's Arctic airspace, which Moscow denies—strengthen Ottawa's
commitment to the region.
Those actions "remind us, as I say, that we have an
obligation as a sovereign nation to have an ability on land, sea and air to be
present and to assert that presence at all times," Mr. Harper said.
Aside from its show of military might, Ottawa and some of
Canada's semiautonomous provinces also have launched a series of diplomatic and
economic efforts to put a Canadian stamp on a larger swath of the Arctic—a bid
to counter Russia's own efforts to bolster its claims in the region.
A handful of other nations, including the U.S. and
Denmark, also claim some of the Arctic—an ice-choked ocean ringed by
archipelagos of treeless tundra—and also are racing to assert territorial
rights over contested borders.
Now, economic activity is limited to small-scale mining
and oil exploration, native fishing and hunting. But with increasing ice melt,
which many scientists and governments ascribe to global warming, that activity
is expected to increase sharply.
Canada signed on to a United Nations treaty in 2003 that
triggered a 10-year timeline for submitting claims over waters outside its
sovereign territory. With that deadline looming, Canadian scientists hope to
finish this month field work aimed at extending Canada's rights over about
656,000 square miles of ocean—an extension of its 200-mile economic-exclusion
zone.
That claim would allow Canada to regulate most economic
activity carried out in those waters: from rule making over fishing, shipping
and oil and minerals exploration to taking responsibility over oil spills and
rescues.
Here in Resolute—a community of about 250 native Inuit
well above the Arctic Circle in Canada's northernmost Nunavut province—Canadian
officials are preparing to shoulder that responsibility.
Part of the recent military training here was a simulated
response to a commercial air emergency. Earlier this year, a group of Arctic
powers divvied up search-and-rescue responsibilities over the region.
The 1,100 Canadian personnel on hand for the exercise—including
investigators from Canada's air-safety regulator—ended up carrying out
real-world search-and-rescue operations after a chartered Boeing 737 crashed
during the exercise, just outside Resolute's airport, killing 12.
"We have to be able to protect [the Canadian
Arctic], defend it, rescue people, respond to disasters, have effective
regulatory systems for development," Mr. Harper said, a day after visiting
Resolute to address troops. "These require investments and a range of
capabilities over a long period of time," he said. "And that's what
we are doing."
The effort comes as Arctic exploration increasingly
becomes a reality. Last month, Exxon Mobil Corp. and OAO Rosneft
agreed to jointly explore for oil in the Russian Arctic. Royal Dutch
ShellPLC, meanwhile, is inching closer to regulatory approval to drill in
Arctic waters offshore Alaska.
Canada also is investing $100 million to map promising
geological formations in its northern territories, in an effort to lure private
investment. It shares that data, free of charge, with interested oil and mining
companies.
Canada's U.N. claim over the Arctic hinges in large part
on how far its continental shelf extends. That is the subject of seabed-data
collection now being conducted by U.S. and Canadian icebreaking ships sailing
near the North Pole. The countries teamed up to share the costs of the costly
and unpredictable venture.
A flashpoint between Canadian and Russian officials is
the Lomonosov Ridge, an 1,100-mile undersea ridge that runs under the North
Pole from Greenland to Russia.
"They are claiming it as a natural prolongation, or
extension, of their continent, and we are claiming it as a natural prolongation
of our continent," said Jacob Verhoef, a senior scientist at the
Geological Survey of Canada with responsibility for the U.N. claim.
The province of Quebec has embarked on a 25-year effort
to lure about $80 billion in new investment in its far north. This year it said
it had already won commitments of about $8.2 billion for 11 new mining projects
there.
Canadian companies, meanwhile, are slowly building up
experience operating in the harsh Arctic environment.
Toronto-based Agnico-Eagle Mines Ltd. started gold production at its
Meadowbank mine—located near Baker Lake, in Nunavut, and just south of the
Arctic Circle—just about three years ago. Costs are higher than executives
estimated, but the mine—bolstered by high gold prices—singlehandedly lifted
Nunavut's economy by almost 12%, says an independent study.
"It's the skill set that matters in this
environment," said Agnico-Eagle's CEO, Sean Boyd, who is now pushing ahead
with development of another gold mine in Nunavut. "And these skill sets
are improving."
*Chip Cummins at chip.cummins@wsj.com