The Arctic This Week Take Five: Week of 27 November, 2023
Finland Closes Entire Border With Russia
As reported by ABC News on November 28, Finland is closing its entire border with Russia for two weeks to curb an influx of asylum seekers. Following the closure of all but one border post last week, the northernmost crossing, Raja-Jooseppi, will also be shut down until December 13. In November, approximately 900 asylum seekers entered Finland from Russia. Finnish Prime Minister Petteri Orpo cited national security concerns as the reason for the closure, with Minister Mari Rantanen describing the situation as a ‘Russian hybrid operation’ against Finland. During the border closure, only freight traffic will be allowed. (ABC News)
Take 1: The decision for Finland to close its entire border is a drastic defensive move towards its national security. This showcases the gravity of the situation and the government’s commitment to addressing what it deems an “exceptional” circumstance. The accusations that Russia is attempting to undermine Finland’s national security adds a geopolitical layer to this narrative. As the northernmost crossing, Raja-Jooseppi, prepares to shut its gates, Finland’s government is sending a clear message that it will not tolerate any compromise on its security. Interior Minister Mari Rantanen’s claim that Finland is the target of a deliberate Russian hybrid operation heightens the stakes, framing the issue both as a migration challenge and a matter of national security. Finland is accusing Russia of orchestrating this surge in asylum seekers as retaliation for Finland joining NATO this year, however, Russia is denying this, furthering the geopolitical complexity of this situation. As the gates close and only cargo trains are allowed to pass, Finland is now at a crossroads between geopolitical tensions and humanitarian concerns. While Finland asserts its sovereignty, it will have to navigate a delicate balance between security and compassion in its northern landscape. (ABC News, Euro News)
World’s Most Northernmost Settlement Gets Mobile Coverage for the First Time
As reported by High North News on November 28, the world’s northernmost settlement will be getting mobile coverage. The settlement, Ny-Ålesund, hosts a permanent civilian station with researchers from over ten countries. The company Telenor Svalbard will be establishing the mobile coverage in order to enhance safety, preparedness, and research opportunities in the Kongsfjorden area. The process for this began in 2001 and now, at the end of 2023, is being implemented. (High North News)
Take 2: The development of mobile coverage in this region is a significant leap in the world of remote connectivity. This endeavor symbolizes a convergence of technology and environmental stewardship. Ny-Ålesund, at 79 degrees north and 1,111 kilometers from the North Pole, has long been a hub for Arctic research, with its origins rooted in 20th-century mining. The introduction of mobile coverage not only enhances the safety and preparedness of the community but also opens new opportunities for scientific exploration and environmental monitoring in the Kongsfjorden area. The complexity and challenges associated with implementing such infrastructure in extreme environments is reflected through the nearly two decades of discussion on mobile availability in the region. One of the hazards and considerations is of potential radio interference with sensitive measuring equipment, and the discussions surrounding this demonstrate a commitment to preserving the integrity of scientific research conducted in Ny-Ålesund. Among residents of this community, the arrival of mobile coverage comes with interesting conversations on the introduction of modern technology in a place known for its desolate Arctic landscapes and extreme climate. The debates among residents about the impact on their way of life, potentially adopting mobile phone-free zones, and the desire to balance connectivity with the tranquility of this special community exhibits the cultural and societal implications of mobile coverage. This news development shows as a reminder that with technological advancements comes a responsibility in ensuring these advancements align with the characteristics and values of the communities they touch, especially in remote settings. (High North News, Telecom Talk)
Inuit-Owned Mineral Exploration Company Takes Over Road and Port Project in Western Arctic
As reported by Cabin Radio on November 29, West Kitikmeot Gold Corp, an Inuit-owned mineral exploration company, has taken over the Grays Bay Road and Port Project (GBRP) in the western Arctic. The transport infrastructure project, previously under the Kitikmeot Inuit Association since 2018, has transferred $21.6 million in federal funding. The Kitikmeot Inuit Association withdrew from the project in March 2023, where it was at a standstill until new leadership. The goal of the project is to enhance Northern economic prospects, facilitating future mining ventures and securing Arctic infrastructure. (Cabin Radio)
Take 3: The GBRP, which upon completion will fully connect Nunavut to Canada’s transportation networks, holds promise for mineral wealth, Arctic security, and community benefits, with West Kitikmeot Gold emphasizing Inuit involvement and a sustainable, ground-up approach. The Inuit-owned mineral exploration company taking the lead reflects a commitment to a sustainable and inclusive project, putting Indigenous involvement at the forefront, an important development in resource projects. The economic implications for Northern regions are substantial, as the project aims to unlock mineral wealth and establish crucial infrastructure. Establishing Canada’s first western Arctic deepwater port is a heavy logistical feat, illustrating a balance between economic benefit, environmental stewardship, and Indigenous rights. West Kitikmeot Gold’s focus on benefiting the Inuit is a step towards more equitable partnerships in the resource sector. The emphasis on community benefits, including support for traditional activities and improved connectivity, demonstrates a nuanced understanding of the project’s potential impact on local life. While these aspirations are positive, striking the right balance between economic development and environmental conservation, navigating proper regulations, and ensuring meaningful community engagement is no easy feat, and will be critical for a successful project. (Cabin Radio, Nunatsiaq News, Nunatsiaq News, Nunavut News)
Northwest Territories Blachford Lake Lodge Sold After Previous Owners File for Bankruptcy
As reported by CBC News on November 24, Justice Andrew Mahar of the Northwest Territories Supreme Court has approved the transfer of Blachford Lake Lodge to Iqaluit-based Arctic Kingdom Polar Expeditions. The facility’s previous owner, Taiga Sports and Fishing, filed for bankruptcy last March, leaving behind $3.4 million in debt, with the Northwest Territories Business Development and Investment Corporation (CIDC) being the largest creditor. The sale, which is expected to close in 2 weeks subject to financing and confirmation of ownership, follows an extensive bidding process overseen by the receiver. Details of the sale, such as the final price and number of bidders, remain confidential until the transaction closes. (Radio Canada)
Take 4: The acquisition of Blachford Lake Lodge by Arctic Kingdom Polar Expeditions represents a significant shift in the tourism dynamics of the Northwest Territories. Well-known as a popular retreat for nature lovers, the lodge gained notable fame after hosting Prince William and Kate, the Duke and Duchess of Cambridge in 2011. The backdrop to this change is the financial turmoil faced by the lodge’s former owner, Taiga Sports and Fishing, which filed for bankruptcy last March, accumulating a substantial debt of $3.4 million. The CIDC is emerging as a major player, being the largest creditor to which a debt of $1.54 million is owed. In the face of economic adversity, the fate of the lodge hung in the balance, with a grueling bidding process overseen by the receiver. The secrecy surrounding the details of the sale, from the final price to the number of bidders, adds an air of suspense to this transition. The court’s decision to seal this information until the sale closes highlights the scale of the deal and could hint at a strategic decision to prevent any outside influence on the ongoing negotiations. Arctic Kingdom Polar Expeditions, the potential new owner, brings a unique profile to the table. Known for offerings such as polar bear watching tours and Arctic safaris, the company’s acquisition of Blachford Lake Lodge suggests a promising blend of tradition and modern adventure in the Northwest Territories. This is not just a change of ownership; it is a time to reflect on the delicate balance between trade and the preservation of cultural and ecological treasures in Canada’s Northwest Territories. (Radio Canada)
Employees Laid Off at Northern Norway Battery Company
As reported by High North News on November 27, Freyr, a Norwegian battery company, has announced significant operational changes, including a reduction of its management team from 19 to 6 directors and the termination of 78 employees. Among these, 10 are based at the Mo i Rana location in Northern Norway. These changes come in the wake of the company’s decision to halt the construction of a planned “gigafactory” in Norway. Freyr is now intending on reducing its expenses in Norway by 50% and shifting attention instead to the construction of Giga America in Georgia, USA. The company had initially planned to invest NOK 40 billion in battery factories in Mo i Rana, which was expected to create 1,500 new jobs. (High North News)
Take 5: Freyr‘s recent restructuring and layoffs signal a strategic pivot for the Norwegian battery company, raising questions about the viability of its initial plans for massive battery factories in Mo i Rana. The decision to cut employees reflects a shift towards cost reduction and a renewed focus on Giga America in Georgia, USA. The abrupt change in direction, fueled by the desire to slash expenses by over 50%, was influenced by the US Congress’s adoption of the green deal package making it more challenging for European goods to enter the American market. While the move may safeguard Freyr‘s financial stability, it raises concerns about the broader implications for Norway’s green energy ambitions and the potential loss of jobs in the country. The initial promise of NOK 40 billion investment and 1,500 new jobs in Mo i Rana now seems uncertain, as Freyr redirects its attention to the US market. The decision also prompts reflection on the impact of global economic policies, such as the US Congress’s green deal package, which appears to be influencing company strategies. As Freyr‘s leadership reshapes the organizational structure, the challenge comes with immediate financial concerns with long-term goals of contributing to sustainable energy solutions. (High North News)