Yellowknife (Aug 29/03) - Con Mine workers knew the end was coming. Some even suspected that job cuts would come sooner rather than later.

Fernand Denault, president of United Steelworkers, Local 802: Workers knew something was coming, but it was a shock anyway. - Mike W. Bryant/NNSL photo Mike Vaydik, president of the NWT-Nunavut Chamber of Mines, said the trickle-down effect on local businesses will be enormous. He said a study conducted by the chamber a few years ago showed that Con and its workforce contributed about $10 million per year into the local economy. "Everything from toilet paper to buying coiled rope," said Vaydik, who was born in Yellowknife's first hospital, a four bedroom building located on the Con Mine site. "There's no question it's going to have an economic impact on Yellowknife." More importantly though, is the immediate impact on Con's workforce, said Vaydik, some of whom are second generation miners. "Some of these guys grew up there," said Vaydik. "They're Yellowknifers and they don't want to move."

"We've been seeing this outfit run the place down for the last few years now. So the writing was on the wall," said Fernand Denault, president of United Steelworkers of America, Local 802. "You can only do that for a certain amount of time."

Denault said this year's lay-offs will come in two stages: 67 on Oct. 24, and 94 workers on Nov. 29, leaving fewer than 40 unionized employees still working at the mine after this year. There are currently about 200 unionized employees at the mine.

Mine manager John Stard said that, after 65 years in operation, there is just not enough gold left to justify keeping the mine open any longer.

"Certainly Con Mine has been a very prolific gold producer over the years," said Stard. "It just hasn't had an influx of finding new ore reserves, and it's right at the end of its life."

Stard said some workers at the mine might be able to get jobs at the company's latest gold prospect at Hope Bay, where Miramar plans to build another mine.

"It's certainly a possibility, but Hope Bay is still a few years away from production," said Stard.

Denault, however, doubts there will be much opportunity for most of Con's current workforce, particularly underground miners, to find jobs in the North once they're laid-off. Hard rock mining in the North is becoming a thing of the past.

"What we see now is open pit (mining)," said Denault. "We've seen the closure of Lupin Mine, and now the underground closure of Con Mine."

He believes there are still viable gold reserves at Con but because Miramar continues to extract ore from the federally subsidized Giant Mine, it's cheaper for them to bring ore to the mill at Con than continue mining underground there.

"There's increased production happening at Giant Mine at the taxpayer's expense," said Denault.

They are now planning to expand production there from 7,000 tons per month to 10,000 per month, while adding another five workers.

City ready

Mayor Gord Van Tighem is optimistic. He said the city is well prepared for Con's closure. When Giant's former owner, Royal Oak, went bankrupt, the city lost more than $1 million in taxes.

"If you look at the city's budget, it's been increasing in other areas," said Van Tighem, noting that Miramar won't begin downsizing it's $700,000 property tax share until after 2005.

"The net effect is that, yes it's a hit, but it's not a crippler."

Miramar currently employs 55 workers, represented by the Canadian Auto Workers, at Giant.

Close to 100 Yellowknife employees will stay on the Miramar payroll at Con and Giant until the summer of 2005.

Meanwhile, if there is any good news to come out Con's imminent closure, it's word Con Trailer Court residents will be allowed to stay.

The company planned to evict homeowners and their trailers by 2005 as part of abandonment and reclamation plan.

"They've agreed to sever the land, providing we're the ones who are able to purchase it," said Lorna Skinner, who's lived there with her husband Steve, a surveyor at the mine, since 1988. "We would prefer to stay here. That would be our preference," said Skinner. "I expect we will be able to."