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Opportunities
Mineral extraction, energy development, fishing, tourism
Mineral extraction
300+ people in mines and support industries, fuels the local economy but raises environmental concerns (greenhouse gas emissions and fragile permafrost destruction), Lunckefjell coal mine near Svea opened in 2014
Energy development
Coal fired power station in Longyearbyen supplies electricity, future potential for geothermal energy as Svalbard sits on mid Atlantic ridge, can reduce reliance on coal, increasing sustainability
Fishing
Barents Sea - one of the richest fishing grounds, 150 species such as cod, herring, haddock. Jointly monitored by Norway and Russia for sustainability
Tourism
70,000 visitors in 2011 (including 30,000 cruise passengers), tourists explore glaciers and northern lights, adventure tourism (snowmobiles) increasingly popular. Provides around 300 jobs in hotels, guiding, and transport, boosting local economy
Challenges of development
Extreme temperatures, construction difficulties, services, accessibility
Extreme temperatures
Winter can get below 30C, meaning people must wear multiple layers (thermal → wool → outerwear). Construction limited to short summer period
Construction difficulties
Permafrost gives solid foundations but melts/thaws cause instability→ stilts needed. Otherwise buildings and roads can crack if thaw. Roads on gravel to avoid heat transfer
Services
Water and electricity provided by individual buildings, overground heated pipes prevent freezing, maintenance costly + complex
Accessibility
Remote arctic location - only by plane or ship. No roads between settlements, needs snowmobiles, restricted flight access (mainly from Norway and Russia