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All eyes on CanTung

Mine may resume operations

Derek Neary
Northern News Services

Yellowknife (Feb 23/01) - The possibility that the dormant CanTung mine near the NWT/Yukon border will go back into production is growing stronger.

Udo von Doehren, president and CEO of Vancouver-based North American Tungsten, which owns the underground mine, said the rising price of tungsten has potentially made the mine viable once again.

Cantung Mine Facts

  • The CanTung mine ceased production in 1986
  • At its peak, the mine employed close to 200 people
  • It's estimated the CanTung mine and MacTung deposit account for 15 per cent of the world's proven tungsten resource base
  • At nearly $70 per metric tonne unit (MTU, which equals 10 kgs), tungsten is approaching a 15-year high
  • Since 1950, tungsten prices have ranged from $10 per MTU to $175 per MTU
  • Production from the CanTung Mine and MacTung deposit is projected at a combined 400,000 MTU's of concentrate per year for more than 30 years
  • North American Tungsten, which is publicly owned, trades on the Canadian Venture Exchange
  • Russia and China have been producing the majority of the world's tungsten over the past few decades
  • Tungsten, the hardest known metal, is used in light bulbs, drill bits, and military weapons


  • "The final decision hasn't been made, but it is basically only subject to us being able to enter into the long-term contracts (with tungsten consumers)," he said Monday.

    "We have just started to talk to some of the people in the investment community."

    Tungsten, the hardest known metal, is used in light bulbs, drill bits, military weapons and for alloying steel.

    North American Tungsten's MacTung deposit, another ore body straddling the NWT/Yukon border, could also be developed if market conditions hold or strengthen, von Doehren said.

    Representatives from the company have already met with officials from the GNWT, DIAND and Mackenzie Valley Land and Water Board. They are hoping to set up meetings with First Nations leaders from the nearby communities in the near future, according to von Doehren.

    Acknowledging that the Deh Cho First Nations is in the process of negotiating self-government and control of the region's resources, von Doehren said his company is willing to listen to the DCFN's suggestions and discuss terms.

    "It all has to make economic sense, obviously. Subject to that, we have an open mind," he said.

    He said he is confident the mine won't encounter any difficulties with the NWT's regulatory regime. North American Tungsten is still in possession of a valid water licence for CanTung, he said.

    "It's in full compliance... it's never had any infractions or any problems under any of the licences," he said.

    "We think we're in pretty good shape... we see no reason why we couldn't go ahead and put the mine into production."

    Although houses and recreational facilities already exist at the mine site, von Doehren said a fly-in/fly-out camp situation is expected to be used if operations resume.

    Former CanTung miners may not be given preference for future jobs because their whereabouts is unknown, he noted.

    "I'm sure we won't have great difficulties in recruiting the workforce, or a contractor for that matter," he said.