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Avalon reconsiders Pine Point project ‘No decision has been made,’ says Bill Mercer, vice president of exploration
Sarah Ladik
Northern News Services
Published Thursday, August 15, 2013
HAY RIVER
Avalon Rare Metals announced it is reconsidering the location of the proposed hydrometallurgical plant at Pine Point last week, citing economic feasibility as and better processing alternatives elsewhere.
The rare earths mined at the Nechalacho site on the banks of Thor Lake, seen here in the beige patches trapped in the darker minerals at a demonstration by senior geologist and site manager for Avalon Chris Pedersen on July 26, would either be shipped further south to be processed, or the reagents needed to do so would be transported north to the South Slave. - Sarah Ladik/NNSL photo
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“There isn’t any decision to move it,” Bill Mercer, Avalon’s vice-president of exploration told The Hub. “But we want to let people know that there is a possibility we’re going to be making that decision.”
He said the choice is really between shipping chemicals and substances to be used as reagents to the north, or the concentrate to the south. Mercer said transportation links and the price and availability of power were the main concerns facing the company with regards to the old mine site at Pine Point.
Mayor Andrew Cassidy said he understands the company is looking for ways to reduce costs and boost investor confidence, but that if the plant is moved south, he would be disappointed.
“We were supportive and very vocal about that support,” he said of the project. “We went out to the public meetings in other communities and said that we supported this development on the grounds that it would benefit the South Slave as a whole, and if it moves further south, that would be disappointing.”
Councillors at Hay River’s town council meeting on Aug. 12 also voiced their concerns with the announcement, echoing Cassidy in their opinion that the town’s support had helped Avalon gain approval based on the impact it would have in Hay River and the South Slave.
“I believe we were mentioned in the MVRB (Mackenzie Valley Environmental Impact Review Board) decision,” said Coun. Vince McKay. “Our letters of support that were included were based on the economic impact the project would have here, and if that changes, that’s definitely something we need to tackle.”
The possibility of the proposed plant finding a home closer to Hay River is still on the table, according to both Mercer and Cassidy.
“We had taken Hay River into consideration in our plans for the plant three and four years ago,” said Mercer. “When we decided Pine Point would be a good location, those other locations faded away a bit, but now they might be fading back in.”
That being said, Mercer said by “Hay River,” the company meant anywhere within about 50 kilometres of the town itself.
“We’re not looking to put it right next to the Ptarmigan Inn,” he added.
Cassidy said there is a possibility of having the plant closer to town as opposed to 50 kilometres down the road, but that creating a heavy industrial park would be key to that happening.
“We don’t have a park like that right now,” he said. “But we would certainly look at developing in that way if it were to become an attractive option.”
If the plant does not stay in Hay River or the South Slave, Mercer said Avalon is looking into options further south such as northern Saskatchewan.
“Fortune has built their plant there,” he said. “There are a lot of similarities between their project and ours.”
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