Mine expansion brings business to Yellowknife
'We would love to work on that project as long as possible'
Elaine Anselmi
Northern News Services
Wednesday, July 13, 2016
SOMBA K'E/YELLOWKNIFE
The recent approval of a Nunavut mining project could have big benefits for Yellowknife's business community.
In June, the Nunavut Impact Review Board approved an amended application submitted by TMAC Resources in 2015 to expand operations at its Hope Bay Gold Mine project - which isn't in production yet but by the end of 2016 - about 125 kilometres south of Cambridge Bay.
The application still awaits federal approval but, if granted, would see the mine life at the Doris North site extended by six years and increase mining activity.
"We're getting closer and closer to having certainty that we'll be able to continue and maintain operations according to our pre-feasibility study," Alex Buchan, TMAC director of community relations in Cambridge Bay told Yellowknifer.
And this is welcome news to several Yellowknife companies that service the mine - primarily in logistics and transportation.
In the last few weeks, BBE - a freight forwarding and logistics company in Yellowknife and Edmonton - packed and loaded about a dozen 40-foot seacans onto Hercules aircraft to be flown up to the Hope Bay site.
The 10-day project, with several complexities, is just an example of the regular stream of work the mining project is bringing to the company.
"That's just a sign of the construction milestones. As they come up and are ticked off, there's more freight and materials that need to be mobilized to site," said Ryan Heslep, business development and commercial manager at BBE.
Anything needed at site, Heslep said BBE loads on planes in Yellowknife. Whether goods are transported by air or water, the company has been working on the Hope Bay project since its previous owner Newmont took the helm.
"For this specific branch, when that project is up to full speed, as when it was with Newmont, it's just as - if not bigger than - some of our existing clients here in town," Heslep said. "It's a big project."
The project brings in work nearly every day, Heslep said, and the option of continuing that contract is one the company certainly welcomes.
"We would love to have a longer contract. We would love to work on that project as long as possible," said Heslep.
"As this project grows, what we do is act as an offsite receiving agent and accept material in Edmonton and Yellowknife ... Local vendors that support the project here in Yellowknife as well, as business grows and the project continues to grow, they'll see benefits as well in terms of more items on site."
Positive growth
Of the various businesses contracted by TMAC for the Hope Bay project, Buchan said a major contributor is the transportation industry - both Summit Air and Acasta Heliflight are contracted by TMAC.
As part of its business development strategy a few years back, NWT and Nunavut Chamber of Mines executive director Tom Hoefer recommended Yellowknife City Council work toward more business opportunities in the Kitikmeot Region.
"We should be thankful for all of the Kitikmeot business we currently get, as residents of that region of Nunavut come to Yellowknife for medical care, to shop, and some even to live here," Hoefer stated in an e-mail response. "The more local people that are hired by TMAC and other exploration and mining projects in the Kitikmeot, the more opportunity we have to see them contributing to the YK economy. And the business opportunity can be significant too."
TMAC is expecting its amended project certificate, along with the necessary water license, by the end of the year, said Ann Wilkinson, vice-president of investor relations. Around that time the mine's processing plant will be commissioned.
As well as increasing the camp capacity by 100 people, the amendment will see an increase in daily mining and milling rates from 720 and 800 tonnes respectively to 2000 tonnes each.
In the meantime, mining continues on in preparation for the processing plant and amendment.
"The goal is to have 110,000 tons of about 15 gram-a-ton material sitting on a stock pile by the end of the year," said Wilkinson. "That would equate to about 55,000 ounces of gold contained in the broken rock."
So far, she said things are going smoothly and the company is continuing to work its way through any concerns or questions about the amendment TMAC is seeking.
