KUGLUKTUK/COPPERMINE
Regulatory review of international zinc producer MMG Resources Inc.'s Izok Corridor project will be on hold at least until the end of the year since the company has asked to update its project design and description.
An aerial view of the Izok Corridor exploration camp and facilities, located about 280 km northwest of Kugluktuk. MMG Ltd. has asked the Nunavut Impact Review Board to change its project design and description. - photo courtesy of MMG Ltd. |
On April 16, MMG asked the Nunavut Impact Review Board (NIRB) for the opportunity to submit an updated project description that could potentially improve the economic viability of the project, before the environmental assessment process is moved ahead.
The project proposal, which currently includes a base metal mining and milling project, producing mostly zinc concentrate with some copper and lead concentrates, a 350 km all-season road and port facility at Grays Bay, is still going ahead, said Sabha Safavi, Canada project manager for MMG.
"We'd like to make sure that it is clear that the project is moving forward and we have not slowed down or halted in any way. What we have done is we have slowed down the process with NIRB and it is due to the fact that we are making a number of changes," Safavi said.
The main project components being evaluated are the mine schedule and production rates, the execution plan and the possibility of bringing a third resource, called Hood, into production in addition to the proposed Izok and proposed High Lake mines.
The average production rate of approximately two million tonnes of ore per annum could potentially be higher under the new design, Safavi said.
Changes to the execution plan specifically refer to additional modulization, or increasing the amount of components that will built off site, and shipped to the Izok Corridor project.
"So these are the key changes that we're looking at because these changes we see will add value to the outcome of the project," Safavi said.
"And we like to do our due diligence so this is why we've slowed down the process at NIRB."
The company will be conducting community consultations before striking the new project design, Safavi said.
MMG originally submitted the Izok Corridor project proposal to the review board last September.
The minister of Aboriginal Affairs and Northern Development Canada approved the Australia-based company's application to proceed to a full regulatory review earlier this month.
The review board has committed to awaiting the submission of an updated project description by MMG before initiating the public scoping process, stated executive director Ryan Barry in an April 18 letter responding to the company's request.
"The board acknowledges that it is in the best interest of all parties to have a sufficient level of detail regarding proposed project activities, components and development schedules prior to initiating the public scoping process and development of (environmental impact statement) guidelines for the project," stated Barry.
Upon receipt of MMG's updated project description, the review board will undertake a preliminary review of the extent of the changes to the scope of the project, Barry added, and then provide an update to the minister of Aboriginal Affairs.
