Fort Simpson (Apr 23/04) - The chairs of the CanTung and Prairie Creek mines were taken aback by a Senate motion that could have severe ramifications for their ventures.

John Kearney, of Canadian Zinc Corporation, and Stephen Leahy, of North American Tungsten, told the Drum their understanding was that existing third-party interests would be protected if and when Nahanni National Park's boundaries are expanded.

However, that wasn't the intent of an April 1 Senate motion by Toronto Senator Consiglio Di Nino, who has urged the federal government to completely restore both mine sites. To become legislation, Parliament would have to review and pass the motion.

If that were to happen, Kearney and Leahy said they would have to abide, but they would seek compensation. Neither was willing to put a price on company assets.

In the meantime, it's business as usual. Leahy said he's hopeful CanTung mine, which has been on caretaker status since the company lost its two main clients in December, will be back in production someday. North American Tungsten also holds the rights to the MacTung deposits, which has a projected 25-year lifespan.

Kearney said Prairie Creek mine, which has enough known mineral resources to be in business for 20 years, could begin production within six months if the proper permits were granted.

Canadian Zinc Corporation isn't at all opposed to the expansion of the park, said Kearney. He said the park and mine can continue to co-exist.

"We believe we can add significant benefit to the enjoyment of the park by the people of Canada," he said, adding that the mine could help provide public access.

Many examples

"There are many examples in the world where mines operate within parks," he said. "There's a lot of fear-mongering out that somehow or other the mine will damage the park or interfere with the park. That's not the case at all in our view."

With the government's co-operation, he suggested that the mine's taxes, royalties and a portion of revenues could be allocated towards the park.

When operating, the mine will also provide hundreds of jobs and numerous business opportunities, he added.

Peter Marcellais, chief of the Nahanni Butte Dene band, said he is in favour of expanding park boundaries to include the entire 35,000km watershed area. He would also like to see the mine sites gone because they represent a potential threat to local waterways, he added.

The Nahanni Butte Dene band passed a resolution last year to break its business contract with Canadian Zinc Corporation.

The mine has only employed a few band members for a few months, so it hasn't been a source of many jobs, said Marcellais.