“Any time there is a mining closure a ripple effect is inevitable,” said Dean Philpott, a real estate investor, coach and speaker, based in the Yukon.
“That said, Yukon has proven over and over again that it remains in somewhat of a real estate bubble, even when the world around us is feeling the pain, and I have a feeling that this will be the case here now.”
Chinese-owned Yukon Zinc issued a press release on Tuesday saying it closed its operation north of Watson Lake, though it may re-open in several months. It said it will lay off around 140 employees, while another 80 positions filled by contractors will also be affected.
“I feel that this will be felt in what one may explain as ‘future Investing’ or a projection that just may not happen, but not on a scale that will even rock the boat to a degree of worry for current investors in the Yukon market,” said Philpott.
He added that the Yukon is currently experiencing more commercial building sales than have ever been recorded historically. “We are still rocking,” he said.
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The closure of a Wolverine mine in southeast Yukon could have a ripple effect on future real estate investment in the region, but one expert says not to worry.