Mineral Products
The mining industry in Newfoundland and Labrador produces more than a dozen mineral commodities that contribute to both our economy and quality of life. The commodities mined by the industry vary from aggregates used in road construction to iron used in structural steel; nickel used to produce stainless steel; granite used in counter tops; and copper wire used in electrical generation and distribution.
Value of Mineral Production
Newfoundland and Labrador produced approximately $4.65 billion in mineral shipments during 2008. Since 2004 there has been almost a six-fold increase in the value of Newfoundland and Labrador mineral shipments. This can be mostly attributed to an increased value of shipments from Voisey’s Bay and a higher price for iron ore from western Labrador. A diversification of the minerals produced in the province due to new mine openings has also been a contributing factor.
The forecast Gross Value of Mineral Shipments (GVMS) for 2009 will be substantially reduced due to a decrease in shipment forecasts at several mines and a general reduction in projected commodity prices. This has been brought on by the global economic crisis that began late in the summer of 2008. As the economic crisis continues to deepen, the province’s mining industry is being adversely affected. If the planned reduction in shipments and anticipated prices for commodities hold true for 2009 the GVMS will be reduced to $3.0 billion. A shipment value of $3.0 billion would still be the third highest GVMS on record in nominal Canadian dollars.
Employment
Direct employment in the Newfoundland and Labrador mining industry is projected to be 4,211 person years in 2009, an increase of 186 over the 2008 estimate. The projected employment increase will result from increased employment at the Voisey’s Bay project, offsetting employment reductions at other mines and in exploration.
Mineral Exploration Expenditures
Expenditures on mineral exploration and deposit appraisal have risen dramatically in recent years, following the rise in commodity prices over the same period. Expenditures rose from about $48 million in 2005 to $148 million in 2007, and the preliminary number for 2008 is $138 million. The current downturn in the economy and resulting decrease in metal prices is expected to have a negative effect on spending in 2009.
| Anaconda Mining Inc. | | Profile | Anaconda Mining Inc. began operations at it Pine Cove gold mine, located in the Ming’s Bight area of the Baie Verte Peninsula, in 2008. The Pine Cove mine is currently working toward, but has yet to attain, commercial production. The Pine Cove deposit was discovered in 1988 and since then exploration work has delineated 2,332,676 tonnes of indicated ore grading 2.76 grams gold per tonne for 207,000 ounces of gold. Inferred resources total 66,700 tonnes grading 2.43 grams gold per tonne for 5,200 ounces of gold.
In a press release on January 14, 2009 the company stated that the Gekko concentrator is not yet performing according to engineering design specifications, and they are trying to rectify the problem.
On June 1, 2009 Anaconda announced it had entered in to a Toll-Processing Agreement with Crew Gold where Anaconda would deliver ore from Pine Cove to Crew’s Nugget Pond mill. The toll processing arrangement is to commence no later than July 1, 2009 and continue for a period of 12 months. This arrangement would allow Anaconda time to work on rectifying problems with the Pine Cove Mill.
Once fully operational, the Pine Cove project is expected to employ approximately 44 people during operation: 20 in the open pit, 15 in the mill, and 9 administration staff. This will result in significant economic benefits to the region over the projected 12 year life of the mine. |
| Atlantic Barite Limited | | Profile | | Atlantic Barite Limited was incorporated in 2004 by Pennecon Limited and Swallow Services Limited to extract barite from the tailings of the former base-metal mine at Buchans in central Newfoundland. Barite is one of the key ingredients in drilling mud for oil and gas wells. Atlantic Barite has reactivated the barite plant, which operated in the 1980s, and has been producing barite by flotation methods since 2006. The plant has the capacity to produce 15,000-20,000 tonnes of barite per year, and has an expected mine life of approximately 25 years. The seasonal operation employs approximately 15 people. |
| Atlantic Minerals Limited | | URL: http://www.atlanticminerals.com | | Profile | Located at Lower Cove on the Port au Port Peninsula, western Newfoundland, Atlantic Minerals Limited operates limestone and dolomite quarries, a modern two-million tonnes-per-year processing plant and deepwater ship-loading facilities. The company produces chemical-grade high-calcium limestone, chemical-grade dolomite, and construction aggregates. Based on 2006 production levels, Aggregates & Roadbuilding Magazine ranked the Lower Cove quarry to be the 20th largest in Canada.
Total shipments of limestone and dolomite from Lower Cove are forecast to be 1.8 million tonnes in 2009, the same as the 2008 level. The company employed 118 permanent and seasonal employees at peak production in 2008. |
| Beaver Brook Antimony Mine Inc. | | Profile | In 2008 Beaver Brook Antimony Mine Inc. reactivated its antimony mine, located in central Newfoundland, after it had been shut down for 10 years. Roycefield Resources Ltd. opened the mine in 1997, but closed it in 1998 as a result of declining prices. The antimony market has since rebounded.
The company is a significant employer in the area with a current workforce of approximately 85 people.
The stibnite ore is mined underground using the overhand cut and fill method, with development waste and quarried rock used as backfill. The ore is fed to the 450 tonnes-per-day mill, which uses a flotation method to produce a concentrate grading about 62%. The stibnite concentrate is trucked to Halifax for shipping to international markets. The expected life of the mine is approximately 10 years. |
| Canada Fluorspar Inc | | Profile | Canada Fluorspar Inc., through its wholly-owned subsidiary, Canada Fluorspar (NL) Inc., is proceeding to reactivate the fluorspar mines located at St. Lawrence on the Burin Peninsula. Canada Fluorspar Inc., a publicly-traded company listed on the TSX Venture Exchange, was created through the amalgamation of Burin Fluorspar Ltd. and Rivera Capital Corp. Planned development and recent activity includes:
•The underground mine development of the partially mined Tarefare and Blue Beach North veins and construction of a tailings management facility at Shoal Cove Pond.
•Upgrades to the existing mill and construction of a new marine terminal in the outer St. Lawrence harbour for the export of fluorspar concentrate. Provincial government financial assistance of 10 million dollars is contingent on several conditions.
•A new National Instrument 43-101 compliant report outlines 9.1 million tonnes of Indicated Mineral Resources, at an average grade of 42.0% CaF2 and 950 000 tonnes of Inferred Mineral Resources at an average grade of 31.0% CaF2.
•Expected production of 120,000 to 180,000 tonnes of acid-grade fluorspar annually.
•The project is registered with the provincial Department of Environment and Conservation for environmental assessment. The federal government will also be undertaking an environmental assessment of the project.
•Site preparation and construction is scheduled to begin by the spring of 2010, and full operations are to commence by the fall of 2011.
•The proposed project would create approximately 300 jobs during peak construction and 178 full-time jobs during operations. |
| Continental Stone Ltd. | | Profile | Continental Stone Limited (CSL) was formed through a partnership between Pennecon Limited and Central Construction Limited, which have many years of experience in the construction and engineering sectors. CSL plans to develop a granite rock quarry and construct a marine shipping terminal north of Belleoram on the province’s south coast.
•The granite will be quarried and crushed on site and loaded into ships for international markets.
•The quarry is expected to have the capacity to produce five million tonnes of construction aggregates annually for over 50 years, and provide 80 to 100 full-time jobs.
•The project has successfully completed both the provincial Environmental Assessment and the Canadian Environmental Assessment process and CSL has submitted a development plan and rehabilitation and closure plan to the provincial Department of Natural Resources. |
| Crew Gold Canada Ltd. | | URL: http://www.crewgold.com/index.php | | Profile | Crew Gold Canada Ltd. operates the Nugget Pond Processing Facility on the Baie Verte Peninsula in northern Newfoundland, where it is currently processing stockpiled ore from its Nalunaq Gold mine in southwestern Greenland. The Nalunaq Gold mine was placed on care and maintenance effective February 28, 2009 and Crew recently announced that the mine is in the process of being sold.
This was to result in the Nugget Pond mill also closing and being placed on care and maintenance in early-June. However, the June 1, 2009, announcement by Anaconda Mining Inc. regarding the toll-processing arrangement for its Pine Cove gold mine ore could extend the mill operation for at least 12 months.
On May 11, 2009, New Island Resources Inc announced that it had exercised its right of first offer from Crew Gold Corporation to acquire the Nugget Pond mill. As part of the agreement, it is expected that Crew will have use of the facility until June 30, 2010, including custom milling ore for third parties.
Since re-opening in February 2007, the Nugget Pond mill has benefited the Baie Verte Peninsula through direct employment, creating 23 new full-time positions and 18 indirect positions through independent contractors. |
| Galen Gypsum Mines Limited | | Profile | | Galen Gypsum started mining its Coal Brook gypsum deposit in the St. George’s Bay area of western Newfoundland in 1999. During the past several years, Galen’s sole market was Lafarge Gypsum Canada in Corner Brook. Galen’s shipments were reduced substantially when Lafarge decided in July 2007 to close its wallboard plant in Corner Brook. Galen continues to truck small quantities of gypsum to Lafarge, which manufactures stucco for Corner Brook Pulp and Paper Limited. |
| Hi-Point Industries (1991) Ltd. | | URL: http://www.oclansorb.com/ | | Profile | | This peat-moss processing company is located in Bishop’s Falls, central Newfoundland. Hi-Point is the original producer of the oil absorbent "Oclansorb". The company also produces horticultural peat. The operation employs 15-20 people seasonally. The company has developed its Island Pond peat bog near the Gander Bay Highway for the production of additional horticultural peat. |
| Hurley Slate Works Company Inc. | | URL: http://www.naturalslate.com/ | | Profile | The slate deposits of Burgoynes Cove, located in Smith Sound, Trinity Bay, eastern Newfoundland, received renewed commercial interest in 1986 after an 80 year production hiatus. Since 2000, Hurley Slate Works Company Inc. (HSWC) has operated a quarry and plant at Burgoynes Cove. The company produces roofing slate, mostly for export markets, and flagging slate for local use. The slate is extracted from the quarry using modern sawing techniques and processed at the plant located adjacent to the quarry. The company has increased slate production from 960 tonnes in 2000 to about 4,200 tonnes in 2008. Average employment for 2008 was about 48 people. The company is installing some automated equipment in the plant in 2009 in order to improve tonnes per man-hour produced.
Hurley Slate Works Company Inc. produces slate roofing tiles of two distinct colours: purple and green. The company plans to introduce a flooring product in the near to medium term. Floor tiles would likely be produced from mottled slate, containing hues of both purple and green. The plant and quarry re-opened on April 1, 2009 following a routine winter shutdown. There are currently 45 employees at the operation. |
| Iron Ore Company Of Canada Ltd. | | URL: http://www.ironore.ca/ | | Profile | Iron Ore:
The Iron Ore Company of Canada (IOC) commenced producing iron ore from its Carol Lake (Labrador West) project in 1962. Canada’s largest iron-ore pellet producer operates several pits, a concentrator, and pellet plant at Carol Lake, port facilities in Sept-Îles, Québec and a 420-km rail line that links the mines and the port. Annual mine through-put at the open-pit operation is in the 35-38 million tonnes range at an average grade of approximately 40% total iron. Annual production capacity is 17 million tonnes of concentrate of which approximately 13.0 million tonnes are pelletized.
In 2008, IOC announced an $800 million expansion program. However, in November, 2008, IOC announced that due to the world economic downturn it would have to postpone the expansion. The company will also shut down two of six pellet machines and all production will be suspended for a five week period in July, 2009, during which time most employees would take their vacation.
Employment is expected to remain steady at a total of approximately 1,600 people. Shipments are expected to decline to 13. 8 million tonnes in 2009, but rebound to 17 million tonnes in 2010.
Dolomite:
The Iron Ore Company of Canada (IOC) has been mining its own dolomite for making fluxed pellets in Labrador West since 1986. Production for 2009 is forecast to be 155,000 tonnes. The company plans to commence mining at the Plateau dolomite quarry near the Javelin road, which is estimated to produce 155,000 tonnes per year over the mine’s life. IOC has cleared the overburden and pressure washed the surface to eliminate contaminants, and plans to begin production early this summer. This deposit is estimated to contain enough product to last more than 25 years at present consumption rates. |
| Labrador Inuit Development Corporation | | URL: http://inuit.pail.ca/lidc.htm | | Profile | TUC, a subsidiary of the Labrador Inuit Development Corporation (LIDC), has been quarrying anorthosite (Labradorite) at Ten Mile Bay near Nain, northern Labrador, since 1992. The squared blocks are shipped to markets in Europe and receive premium prices. TUC is currently seeking markets in North America and has attended several rock show exhibits.
LIDC also operates a stone processing plant in Hopedale, which utilizes undersized quarried material from Ten Mile Bay to manufacture monuments and furniture. Commercial production began in the fall of 2002. The stone plant at Hopedale is scheduled to double production in 2009 with the addition of a new line.
In 2009, TUC plans to invest $400,000 in new equipment and to mine from two quarry faces that were developed in 2008. Shipments in 2009 are forecast to be approximately 1,200 m3, and employment is forecasted to be 33 people. |
| Labrador Iron Mines Holdings Limited | | URL: http://www.labradorironmines.ca | | Profile | Labrador Iron Mines Holdings Ltd. (LIM) holds mineral claims containing historic iron ore deposits in western Labrador at the Quebec-Labrador border near Schefferville. The company plans to develop these direct-shipping iron ore deposits which were part of the Iron Ore Company of Canada operations from about 1954 to 1982. Highlights of the project include:
•100 million tonnes of direct shipping ore (IOCC 1983 reserve book). The company is currently producing a National Instrument 43-101 resource statement for these deposits.
•Phase 1 anticipates production of 2 million tonnes per year initially, increasing to between 3 and 5 million tonnes after 3 years.
•Project is registered with the Department of Environment and Conservation and the company has submitted an Environmental Impact Statement. DOE&C has asked the company to provide more information.
•Phase 1 has a 5 year production schedule. If future phases are developed, a further 15 years of project life is anticipated.
•About 100 jobs during construction and during operations.
•Target start date is second half, 2009.
|
| New Millennium Capital Corporation | | URL: http://www.nmlresources.com/ | | Profile | New Millennium Capital Corporation (NML) holds mineral claims in northwestern Labrador and Québec near the Labrador/ Québec border at Schefferville. The company’s ground contains two styles of iron ore mineralization. The LabMag deposit is a large taconite deposit which grades about 30 % iron. NML’s direct-shipping iron ore deposits are a higher grade hematite ore with grades between 50 – 55% iron. The company has done a considerable amount of work to advance these projects:
New Millennium Capital Corp. – Direct Shipping Iron Ore in Labrador/Quebec
•52.5 million tonnes of Proven and Probable Mineral Reserves contained within 56 million tonnes of Measured and Indicated Mineral Resources. Further Inferred Mineral Resources of 5.8 million tonnes.
•A further 40 – 45 million tonnes of historical resources which are not compliant with NI 43-101 standards.
•Feasibility study to be completed by the end of the 2nd quarter, 2009
•Project is registered with DOE&C (EIS required but not yet submitted)
•Production from Labrador deposits anticipated at 1.4 million tonnes in years 1 & 3 and 2.7 million tonnes in year two.
•Direct creation of about 188 jobs anticipated in operations phase.
•Production targeted for September, 2010.
•Tata, a large Indian Steelmaker, is a strategic partner in the project.
New Millennium Capital Corp. – LabMag deposit in Labrador
•3.5 billion tonnes of Proven and Probable Mineral Reserves within 4.6 billion tonnes of Measured and Indicated Mineral Resources. Additional 1.2 billion tonnes of Inferred Mineral Resources.
•Tata, a large Indian Steelmaker, is a strategic partner in the project. Tata has an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag project.
•Previous to Tata’s involvement a favourable pre-feasibility study anticipated 810 direct jobs at the proposed mine, concentrator and pellet plant with production of 15 million tonnes per year of pellets anticipated.
•Target start date depends on the outcome of Tata’s due diligence on which a decision is due by end of the 2nd quarter, 2009.
•Mine life in excess of 65 years anticipated.
|
| Newfoundland Pyrophyllite | | URL: http://www.tre.ca/Divisions/pyrophyllite/pyrophyllite.html | | Profile | The pyrophyllite mine in Manuels, Conception Bay is operated as a subsidiary company of Trinity Resources and Energy Limited. The company has been actively involved in product research and market development. Its products are marketed under the trade name “ALTIFIL”.
With known reserves, the processing facility at Manuels can dry grind and air classify various grades of pyrophyllite powder, which is used as industrial filler in paints and ceramics. |
| Peat Resources Ltd. | | URL: http://www.peatresources.com | | Profile | This Toronto-based company was formed to develop, produce, and market peat fuel for use in electrical-generating stations and other facilities. The company is focusing its efforts on peat fuel developments in Ontario and Newfoundland and Labrador.
•Initial resource evaluation of peat lands in the Stephenville-St. George’s area has defined over 42 million m3 of fuel-grade peat. Surveys conducted near Hare Bay and Gambo have identified about 32 million m3 of fuel-grade peat.
•In November 2008, the company started production in a small-scale production facility for peat fuel pellets in Stephenville. The plant is now being modified and improved to achieve greater energy and production efficiencies.
•In 2009, Peat Resources will produce peat fuel pellets for various combustion and marketing trials, including a 500-tonne bulk shipment for a peat co-firing trial at Ontario Power Generation. |
| Rambler Metals and Mining Canada Ltd. | | URL: http://www.ramblermines.com | | Profile | Rambler Metals and Mining PLC (Rambler) holds rights to mining leases and mineral claims located on the Baie Verte Peninsula. These rights cover the former copper/gold-producing Ming Mine as well as adjacent properties that had been brought under the control of Altius Minerals Corporation prior to the properties being assigned to Rambler in a 2004 agreement. Rambler has worked the property continuously since then and has reached some important milestones:
•Produced a National Instrument 43-101 resource statement outlining 3,361,000 tonnes of Measured and Indicated Mineral Resources at a grade of 2.21% copper, 1.37 grams per tonne gold, and 7.86 grams per tonne silver.
•An additional Inferred Mineral Resource of 1,498,000 tonnes at a grade of 1.72% copper, 2.05 grams per tonne gold, and 9.36 grams per tonne silver.
•Rambler is currently conducting a feasibility study on the Ming mine based on the latest resource estimate. When this study, and an underground engineering plan are completed, Rambler will register the project with the appropriate government agencies.
•Rambler is also currently engaged in discussions with a number of third parties, which it holds confidentiality agreements with, for the project financing. Upon completion of project financing it is Rambler’s intention to rapidly develop the Ming massive sulphide zones, bringing them into production in 2010. |
| Shabogamo Mining & Exploration Limited | | Profile | | Shabogamo Mining & Exploration Limited started mining its Roy’s Knob silica deposit near Labrador City, western Labrador, in 1999. The company washes and screens the quartzite at its plant in Wabush and ships the product by rail to Sept Îles, Québec. Shabogamo’s product has been sold under contract to Bécancour Silicon Inc. of Québec, which uses the material to manufacture silicon metal. The operation employed 18 seasonal people and two year-round employees in 2008; shipments were about 54,000 tonnes. Shabogomo’s most recent contract to supply quartzite has ended and the company is currently exploring alternative arrangements. |
| Teck Duck Pond Operations | | URL: http://www.teckcominco.com/ | | Profile | The Teck Duck Pond Operations is located approximately 30 km south of the former Buchans mine in central Newfoundland. At start-up, the deposit had proven reserves of 4.1 million tonnes at an average grade of 3.3% copper, 5.7% zinc, 59 grams/tonne silver and 0.9 grams/tonne of gold. This is an underground copper-zinc mine and concentrator with annual production of approximately 650,000 tonnes and average employment of 287 people.
In October 2008, Teck Cominco Ltd. launched a new name and brand that is globally recognized and respected: Teck. It’s a change that builds on its decision to group mining and refining operations into strategic business units for each major commodity: copper, metallurgical coal, zinc, gold and energy. In Newfoundland and Labrador, Teck Duck Pond Operations is part of the copper business unit.
The downturn in the economy has resulted in a challenging first quarter for the mine. But on June 3, 2009, Teck announced that its Duck Pond Operations was getting ready to reach a milestone that will enhance its production. They are presently entering in to heart of the ore body and will have access to large zones that will allow them to more likely reach their production quotas. Given the current economic environment this is very important. |
| Terra Nova Granite (2007) Inc. | | URL: http://www.hurleygroup.ca | | Profile | | In late 2007, the Hurley Group of Companies purchased Terra Nova Granite Inc. from Central Holdings Inc. The purchase included the production facility, equipment, and inventory. Located at Jumpers Brook near Bishop’s Falls in central Newfoundland, the current operating company, Terra Nova Granite (2007) Inc., is focusing on producing blank monuments, architectural and landscape products, and countertop slabs for mainly export markets The company is also building on market opportunities on the Island. |
| Torngait Ujaganniavingit Corporation (TUC) | | URL: http://inuit.pail.ca/tuc.htm | | Profile | TUC, a subsidiary of the Labrador Inuit Development Corporation (LIDC), has been quarrying anorthosite (Labradorite) at Ten Mile Bay near Nain, northern Labrador, since 1992. The squared blocks are shipped to markets in Europe and receive premium prices. TUC is currently seeking markets in North America and has attended several rock show exhibits.
LIDC also operates a stone processing plant in Hopedale, which utilizes undersized quarried material from Ten Mile Bay to manufacture monuments and furniture. Commercial production began in the fall of 2002. The stone plant at Hopedale is scheduled to double production in 2009 with the addition of a new line.
In 2009, TUC plans to invest $400,000 in new equipment and to mine from two quarry faces that were developed in 2008. Shipments in 2009 are forecast to be approximately 1,200 m3, and employment is forecasted to be 33 people. |
| Vale Inco Newfoundland and Labrador Limited | | URL: http://www.vbnc.com/ | | Profile | Vale Inco Newfoundland and Labrador Limited (VINL) reported that production from Voisey’s during 2008 totaled 77,500 tonnes of nickel, 55,400 tonnes of copper and 1,700 tonnes of cobalt. These higher quantities were noted as being the result of good asset performance and continuing above plan ore-grades. Employment is anticipated to increase from 750 person years estimated for 2008 to 1200 person years for 2009 as a result of the initial construction workforce being required for the commercial hydromet nickel processing plant at Long Harbour.
Vale announced that it will shut down the Voisey’s Bay operation including the Ovoid mine and processing mill for the entire month of July 2009. This is in response to existing poor economic conditions and conditions in the global nickel market. However, there is no anticipated negative affect on employment due to the scheduling of holidays and the fact that it is a two week fly-in and fly-out operation.
Vale Inco has formally notified the province that it will construct a commercial hydromet nickel processing plant at Long Harbour. On January 29, 2009, the province and Vale Inco announced that they had reached an improved Development Agreement for the construction of the plant. Due to its larger size and complexity, the company was granted a 14 month extension for the construction period which results in a new completion date of February 2013. The total cost of construction is estimated at US$2.17 billion.
The construction phase of the Long Harbour plant began in the second quarter of 2009 with the commencement of site establishment and infrastructure development activities. The early works program will include site clearing, port site demolition and remediation and the completion of a site survey. Service contracts for temporary offices, security, medical services, temporary power and communications have been awarded. |
| Wabush Mines | | URL: http://www.cleveland-cliffs.com/mines/Wabush_frames.html | | Profile | Wabush Mines, Canada’s third largest iron ore mine, commenced mining iron ore from the Scully Mine in Labrador in 1965 and currently operates a mine and concentrating plant at Wabush and a pellet plant and shipping facilities in Point Noire, Québec. Cliffs Natural Resources Inc., the operator of the project, owns 26.9% of Wabush Mines, US Steel owns 44.6% and ArcelorMittal Dofasco Incorporated owns 28.6%.
The economic downturn has hit hard at Wabush Mines. In 2009, production is expected to decrease significantly to 2.1 million tonnes from the 4.6 million tonnes in 2008. On February 16th, 2009 Wabush Mines laid off 125 workers as the company followed through with job cuts announced in December, due to the slump in demand for steel.
On January 12, 2009, ACOA announced a $2.2 million investment toward Wabush Mines’ $4 million manganese separation project. Wabush Mines will assess and evaluate a manganese separation technology to determine if the company can reduce the manganese content of its ore to acceptable levels. If the separation technology can be successfully developed and implemented, the remaining life of the mine could increase from 10 to about 20 years. |
|
