NORTHWEST TERRITORIES
A milestone decision is in the making, both for Fortune Mineral's NICO project and for the Tlicho government.
A load of ore is hauled during a test mining program at Fortune Minerals Inc.'s NICO gold-cobalt-bismuth-copper project. - photo courtesy of Fortune Minerals Ltd.
|
NICO project highlights
- Mine life of 19.8 years
- Almost 33 million tonnes of proven and probable mineral reserves production expected by the end of 2015
- Expected to employ 150 employees during open pit operations and 250 employees during underground operations
- Plant site will require an all-weather road from mine site to the highway. It is expected to connect nearby Tlicho communities to the highway as well.
|
The Mackenzie Valley Review Board submitted its recommendations for the NICO gold-cobalt-bismuth-copper mine and mill on Jan. 28 to the Minister of Aboriginal Affairs and Northern Development Canada and also to the Tlicho Government.
The review board recommended the project bypass a full environmental review, providing it meets certain requirements outlined in the report.
"This would be the first time that we're in this kind of situation with the process," said Chief Alfonz Nitsiza of Whati, who spoke on behalf of the Tlicho Government.
"This (project) is totally inside the Tlicho land, the 39,000 square km ... so now the game has changed and according to our government we have the same level as the Minister when it comes to approving the project."
Nitsiza said Tlicho staff are in communication with federal senior staff and will brief the Tlicho government on developments. He said the decision, once its made public, will likely be jointly presented and agreed upon by both governments.
"That's the whole idea of self-governing," he said. "It's really a government-to-government relationship."
He said there is no deadline for the decision-making process but expects it to be around three months.
Production expected in 2015
Julian Kemp, vice-president finance and the chief financial officer for Fortune Minerals Inc., said production at the mine is targeted for the end of 2015, pending permitting and the securing of a joint venture partnership with one or more party to finance the construction of an all-weather road to Whati.
Ore mined from the site, located 50 km northeast of Whati, will be shipped to Hay River where it will be taken by rail to a refinery in Saskatchewan.
The decision to ship outside the territory came down to cost, said Kemp
"When we were first looking at the project we were first looking at building everything in the Northwest Territories," Kemp said. "The decision to move the refinery part of it to Saskatchewan was really driven by the lower cost of power.
"One of the biggest costs of the refinery is electrical power and ... constructing such a facility (in the NWT) has a significant premium to it."
The Government of Saskatchewan offered a five-year tax holiday for Fortune Minerals if it constructed the refinery there, Kemp added.
Nitsiza said the location of the refinery is alright with the Tlicho, because it will minimize the amount of waste that is handled in the region.
He said people who are concerned about the environmental impacts of the project link it to past mines that have been problematic, but added the more people know about the project, the less likely they are to worry.
"There is fear of the unknown, I guess," he said. "But I think people need to be well-informed of exactly what is planned for the development. I think that will help them understand more because, as time moves on, there are new methods of doing things. It's getting easier with new technology."
Nitsiza added the community is keen on the all-weather road construction.
