Nunavut nixes Agnico’s Meliadine gold mine expansion
Nunavut’s Impact Review Board has rejected Agnico Eagle Mines‘s (TSX:AEM; NYSE:AEM) application to expand the Meliadine gold mine near the northwest shore of Hudson Bay.
The board said the proposal can’t be accepted because of the potential for negative and lasting effects on caribou. It also mentioned the uncertainty of cumulative effects in its ruling released Nov. 17.
The application would have extended the mine’s life by 11 years to 2043. An 11-turbine wind farm was also proposed for the site 25 km from Rankin Inlet, the territory’s largest community after the capital, Iqaluit.
Concerns about the local caribou dominated during a public hearing in September. The proposed wind farm’s location was also questioned. Agnico said on the last day of the hearing that it would work with local Indigenous communities to find a new site for the turbines, farther from caribou calving grounds.
In a statement to CBC, Agnico said it is “surprised and disappointed” by the decision.
“We will take the time to fully review and understand the board’s recommendation report and assess our next steps before making any further comments,” Agnico spokesperson Natalie Frackleton told the broadcaster.
The board did, however, encourage Agnico to submit a new proposal.
The federal minister of northern affairs, Daniel Vandal, has up to 180 days from the date of the board’s decision to either accept or reject it.
The Meliadine mine produced 372,874 oz. of gold last year at a total cash cost of US$863 per ounce. The mine has proven and probable reserves of 3.6 million tonnes grading 6.5 grams gold per tonne for 3.8 million oz. contained metal.
