12/05/2012 10:47 EST | Updated 02/04/2013 05:12 EST

Canada's North a challenging place to invest, says report

A new report released by a House of Commons committee sheds light on the rocky road to resource development in the North.

The report, called Resource Development in Northern Canada, says an inadequate energy system and a lack of skilled workers make the North a challenging place to invest.

But some developers say unresolved land claims are what really stand in their way.

The president of Diamonds North Resources, Mark Kolebaba, was a witness to the report.

He's worked in the north for almost 10 years and is starting to move his operations down south.

“We had a lot of difficulty in getting permits and a clear path to an agreement,” Kolebaba said.

His company spends 95% of their budget in Nunavut and only 5% in the Northwest Territories. He says that’s because Nunavut has settled its single land claim.

Kolebaba says having to deal with so many different communities delays digging into land in the NWT.

“We are not going to spend $10 million and then get to a point where we can't go any further because we can’t agree to something,” Kolebaba said.

Martin Von Mirbach, director of the World Wildlife Fund’s Arctic Project, also witnessed the report and says land claims can't be sidestepped.

“It’s not really for the proponent or government to override. Those processes are defined and to not follow them is really asking for trouble down the road.”

The Conservative-led committee recommended the completion of Aboriginal land claims.

Opposition NDP criticized the committee's study for not inviting enough aboriginal participants.