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RANKIN INLET
A controversial decision by the Nunavut Impact Review Board (NIRB) could delay further development of the Meliadine gold project near Rankin Inlet for up to two years.

The Meliadine project is owned by Agnico-Eagle Mines (AEM) Ltd., which also owns and operates the Meadowbank gold mine near Baker Lake.

NIRB director of technical services Ryan Barry said the board was presented with two different assessments, with the Meliadine road and mine development being put forward as stand-alone projects.

He said the board decided on the road first and the mine a few days later.

"The board felt the road proposal was insufficiently developed because it was too closely linked to the mine development to be considered separately," said Barry.

"The decision on the mine proposal was that it requires further review, and it would be prudent for the board to review construction of the all-weather road as a pre-development activity through the course of that review."

The decision to combine AEM's road proposal with its mine development proposal for the Meliadine gold project could have long-term financial impacts on both AEM and the community of Rankin Inlet, the company said. The decision was contained in recommendations put forth by the review board to Aboriginal Affairs and Northern Development Canada (AANDC) Minister John Duncan last month.

AEM regional manager of environment, social and government affairs Larry Connell hopes to reach a compromise with NIRB.

He said a July 4 decision indicated AEM hadn't supplied enough information for NIRB to make a decision on the road project and suggested the minister should send the application back to AEM for rescreening.

"The second decision on July 8 refers the full mine project to a part five or six review, and has a whole section on the road showing NIRB's discomfort with what it perceives to be a splitting of the project," said Connell.

"So, we're wondering where does that leave us now?"

Barry said it's hard to determine how long the road would be delayed by having it included as part of the mine-development proposal.

"We don't know how long it will take Aboriginal Affairs and Northern Development Minister John Duncan to come back and refer this project for review.

"It has typically taken between three months to a year for referrals, but there's no set time for him to do it in."

Connell said AEM has to convert a resource to a reserve at Meliadine, which means getting back underground to obtain a better bulk sample for an economic-feasibility study. AEM needs a permanent road to transport fuel if it wants to continue stepping up the pace of development at Meliadine, he added.

"It's a logical approach that needs to be thought of if Nunavut is ever going to be in a position to advance these large deposits."

Connell said people in Rankin have made it clear they prefer a public access road to Meliadine.

He said while a delay in the road wouldn't mean the end of Meliadine, it would mean a loss of jobs and training during the next year for a workforce comprised of 50 per cent Inuit.

"Almost the entire region is frustrated by this decision because the road was going to be built with a lot of local labour."

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