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SOMBA K'E/YELLOWKNIFE
Avalon Rare Earth Metals Inc. is expecting little opposition to its Nechalacho Rare Earth Elements project once it begins public hearings with the Mackenzie Valley Review Board in just over a month.

"There is really no organized opposition to the project that I know of in the North or outside of the North that I'm aware of," said Don Bubar, president and chief executive officer of Avalon Rare Metals Inc.

"We've had good support from the local communities right from the start because of our openness and transparency about what we're doing right from day one."

Mark Wiseman, vice-president of sustainability for Avalon, added the recognition Avalon has received for its consultation and involvement of local interest groups has also benefited the project in garnering the support of bankers and customers.

The project is located at Thor Lake and the lake is the only body of water nearby containing fish. However, Avalon's finding show their mine activities will have little impact on the fish or other organisms in the water.

Wiseman said the nature of the ore, which is not acid-generating, as well as low water usage and a specifically designed water treatment system mean Nechalacho will have no impact on Thor Lake.

The Department of Fisheries and Oceans takes a similar stance in the technical report it submitted to the review board and requested to not present at the hearing since it had no recommendations for the project.

Lutsel K'e Dene First Nation and the NWT Treaty #8 Tribal Corporation expressed concerns about the cumulative effects of other mines in addition to Nechalacho on the Bathurst caribou herd, among others.

However, Wiseman said Avalon has addressed the possible direct and indirect effects of the project on all wildlife, including the caribou, and it will participate in wildlife monitoring activities.

Nechalacho may well be a crowning jewel for Avalon, should it reach production.

Pierre Neatby, vice-president of sales and marketing for Avalon, said China, which produces almost 100 per cent of the world's supply of heavy rare earth metals, is expected to deplete its reserves over the next 10 to 15 years and is currently restricting its exports of the materials.

This shift in supply compounded by a conservative estimated growth in demand of eight to nine per cent per year, means Nechalacho is well situated to emerge as a significant producer of rare earth metals.

"This is our top priority project by far," said Bubar.

"It represents at least 95 per cent of our effort right now ... If we're successful in getting this to production it will vault us into the leagues of serious producers in the world of mineral development."

Neatby said the materials produced at the project has such applications as the construction of wind turbines, motors, energy-efficient lighting, catalysts for processing oil and aspects of electronics and automotive industries.

"Right now, Europe, South Korea and Japan are probably the largest consumers, or are expected to be the largest consumers," Neatby said. "But there are also several large consumers in North America."

The project is expected to start production in 2016 with materials for sale in 2017.

The public hearings will take place Feb 18 to 22 in Yellowknife and on Feb 26 in Fort Resolution.

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