NAHANNI
A tungsten mine in the southeast corner of the NWT faces an uncertain future as its prepares to temporarily close next month with no set date to reopen.
The Cantung Mine will be closing temporarily next month with a reopening date dependent on the improvement of economic and market conditions. - photo courtesy of North American Tungsten |
On Sept. 9, North American Tungsten Corporation Limited (NATCL) submitted a letter to the Mackenzie Valley Land and Water Board notifying the regulatory officer there that the company will be temporarily shutting down operations at its Cantung Mine by the end of October, the only tungsten mine currently operating in the NWT.
"The last day of commercial operations will be Oct. 27," the letter states. "Following this date, a short period of cleanup... a care and maintenance Plan is being developed to guide this process."
This plan involves a full-time team on location to continue site monitoring and to ensure that the mine remains in good condition for a future return to operations.
The letter goes on to state that "the length of the shutdown is not known, but NATCL is hopeful that the operations will be able to resume in the summer of 2016, if economic and market conditions improve
sufficiently."
As of press time, the North American Tungsten Corporation has not released a public announcement of the closure on its website, nor has the company responded to interview requests.
2015 has been a difficult year for the Cantung Mine. In June, its parent company obtained creditor's protection due to its inability to meet its financial obligations amidst debts that had ballooned to more than $75 million.
In July it permanently laid off 50 employees, and in August a burst pipe at the mine resulted in 2,000 litres of water and tailings solids spilling into the ground.
Because North American Tungsten Corporation has filed for creditor protection in British Columbia and the case is before the courts, Industry, Tourism and Investment Minister David Ramsay declined to comment on the mine's closure at this time.
"The GNWT is an active participant in the court proceedings and continues to engage in discussions with the both NATCL and the court-appointed monitor," said GNWT spokesperson Andrew Livingstone. "During these proceedings, NATCL remains responsible for its Cantung mine operations."
Livingstone also stated that government inspectors will continue to monitor the Cantung Mine during this temporary closure to ensure the company remains in compliance with all necessary licences and permits.
Tom Hoefer, executive director of the NWT & Nunavut Chamber of Mines, said it's always a sad day when news breaks that a mine is closing.
"It's unfortunately reflective of this malaise or constant surprises we seem to get in a global marketplace," he said.
"We've seen a lot here in the last few years with it becoming very difficult for (junior mining companies) to raise money, then commodities markets dropping, and ... the stock exchange issues they've been having in China that's been affecting the markets, and oil prices - it's just been a pretty rough last three years."
However, Hoefer said he remains optimistic.
"Cantung is like the Little Engine That Could," he said, adding that this is not the first time since the mine first opened in 1962 that it has had to suspend operations.
Hoefer described Cantung as "a quality deposit," but also said that China has traditionally been able to produce large amounts of tungsten far more cheaply than Canadian firms, which has meant the market is sometimes flooded with Chinese tungsten and prices plummet.
According to Hoefer, it's much easier to raise money for diamond and gold exploration than for base metals, rare earth and iron.
"But one never knows. Looking at the market place out there, it's hard to crystal ball it," he said.
