Chris Puglia
Northern News Services

Yellowknife (July 31/02) - Three hundred employees working for local mining company Miramar Mining Corp. at the Con and Giant mines will be working until 2004 following a decision by Miramar to extend local operations.

The decision, based on high gold prices and a recently ratified labour agreement, was made on July 13 and will have a number of local economic impacts.

"There will be a host of spin-offs," said Brian Labadie, senior vice-president of operations for Miramar Mining Corp.

Those benefits include prolonged employment, continuation of tax levies for the City of Yellowknife and a commitment by Miramar to purchase locally as much as possible.

Although gold prices have declined from a June peak of US $330 US to US $303 (eight per cent higher than December) as of July 26, Labadie says that has not affected Miramar's decision to continue operations.

"I have concerns, but none that would impact the decision," says Labadie. "Gold prices would have to drop significantly to reverse the decision.

Labadie would not say at what value of gold Miramar has set their production extension.

He did comment however, that the value was set lower than the higher values that have been experienced since June.

The City of Yellowknife welcomes the news, saying it bodes well for the city's economic development.

"Any extension of gold production in the City of Yellowknife is welcome news because it contributes to the city's goal of diversification and sustainability," said Yellowknife director of economic development Peter Neugebauer.

"The gold mines contribute to the city's economy differently than other forms of mining because they pay property taxes directly.