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Moving minerals through the Deh Cho
Selwyn Project to apply for land use permits to upgrade access road
Roxanna Thompson Northern News Services Published Thursday, July 28, 2011
This summer, Selwyn Chihong Mining Ltd. plans to apply for land use permits through the Mackenzie Valley Land and Water Board and Parks Canada, which will allow it to expand and change the purpose of the Howard's Pass access road. The road runs approximately 40 kilometres through the Deh Cho, including 20 km through the Nahanni National Park Reserve, and an additional 40 km through the Sahtu to reach the Selwyn Project. The project is made up of a series of 13 known lead and zinc deposits primarily located on the Yukon side of the NWT/Yukon border. Selwyn Chihong Mining Ltd., a joint venture operating company owned equally by Selwyn Resources Ltd. of Vancouver and Yunnan Chihong Zinc and Germanium Ltd. based in the Yunnan province of southern China, plans to bring the project to production by 2014. The proposed development would include two underground mines that would target two deposits. A central mill and processing facility would produce lead and zinc concentrates, said Justin Himmelright, the vice-president of environment and community affairs for Selwyn Resources Ltd. The mines and facilities would all be located in the Yukon. The project is approximately 170 km northeast of Ross River, Yukon. The concentrates would be moved by truck down the Howard's Pass access road, which connects to the access road for Cantung Mine and then through the Yukon and part of B.C. to the port of Skagway, Alaska, said Himmelright. The concentrates would then be shipped to smelters in the Pacific Rim, primarily those owned by Yunnan Chihong Zinc and Germanium Ltd. The Howard's Pass access road was built in the late 1970s to support exploration and mine development at Howard Pass at the time, Himmelright said. The company needs a land use permit to expand the road from five metres to 8.5 metres. The upgrades would also include realigning some portions of the road to make them safer as well as reinforcing the road and creating adequate ditching. The company also needs permission to change the purpose of the road from supporting exploration to hauling mineral concentrates, Himmelright said. The company expects their applications to be sent for an environmental assessment. The Canadian Zinc Corporation, which is currently undergoing an environmental assessment, also plans to move lead and zinc concentrates from its Prairie Creek Mine site in the Deh Cho by truck. Concerns about the effects of potential spills as well as the impacts of the road on wildlife were two of the primary concerns raised during community and public hearings held for the environmental assessment in late June. Traffic management Himmelright said Selwyn Chihong is aware of the concerns surrounding the movement of concentrates and the company plans to move its concentrates in sealed containers that are engineered to withstand impacts and will have practiced response plans in place. The company is also looking at management plans for traffic on the road to limit impacts on wildlife. Although the Selwyn Project is located in the Yukon, Himmelright said the NWT also stands to benefit from the mine. Between 350 to 400 direct jobs are expected to be created by the mine. Based on the two deposits, the project will have at least a 10-year mine life and possibly longer if the other deposits are targeted, he said. "It would be a very positive economic engine for the North," said Himmelright. The mine's workforce and supply requirements will likely exceed the capacity of nearby Northern communities, so the company will be looking on both sides of the border for recruits, he said. In early June, the company made a presentation in Fort Simpson to some Dehcho First Nations' leaders. The presentation was a way to initiate a consultation process and raise the possibility of establishing an agreement on the Howard's Pass access road and discuss opportunities and benefits related to it, said Himmelright. The company has not heard a specific response back from Dehcho First Nations. Selwyn Resources Ltd. has already signed a co-operation agreement with the Tulita Land Corporation, the Fort Norman Metis Land Corporation and the Norman Wells Land Corporation that includes opportunities for employment and service contracts related to the exploration and development activities at the project. Dehcho First Nations didn't have any representatives available by press time to speak about its response to the Selwyn Project.
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