Mineral Products
The Province of Newfoundland and Labrador produces more than a dozen commodities that help drive our economy, and vastly improve our way of life, through direct and indirect employment. The commodities mined by the industry include aggregates used in road construction; iron used in structural steel; nickel used to produce stainless steel, and copper used in electrical generation and distribution.
Several projects are in development, such as St. Lawrence Fluorspar by Newspar, Long Harbour hydromet plant by Vale Newfoundland and Labrador Ltd., and Elross Lake iron ore by Tata Steel Minerals Canada Ltd. Many other projects have positive economic assessments and other long-term projects are still at the exploration stage.
Value of Mineral Production
Last year boasted all-time highs in mining production. This accomplishment was referred to by the Premier recently as a “stunning success”. This forecast for 2012 predicts a further increase in these numbers.
The forecasted gross value of mineral shipments for 2012 is $5.7 billion. Again, this is a milestone for the province. The 2012 forecast is approximately 25% greater than the estimated $4.6 billion of 2011. The forecasted value is partly attributed to the addition of Labrador Iron Mines Holdings Ltd. going into their first full year of production and expected production increases at the Iron Ore Company of Canada.
Employment
Direct employment in the provincial mineral industry is projected to be 7684 person years in 2012, an additional 929 over the 2011 estimate. This is mainly the result of increased hiring for construction of the hydromet nickel processing facility at Long Harbour, strength in the iron ore industry and the start of construction at Newspar’s Fluorspar operations.
Alderon Iron Ore Corporation
Profile
Alderon Iron Ore Corporation (Alderon) is developing the Kamistiatusset (Kami) iron ore project in Labrador West. The project is located within Labrador, 6.4 km east of Cliffs Natural Resources’ Bloom Lake mine and 5 km southwest of Wabush Mines.
A 2011 preliminary economic assessment suggested that the project can economically support an operation that would produce 8 million tonnes of iron concentrate per year grading 65.5% iron. Capital cost of the project would be about $1 billion and the mine would have a life of 15 years. The assessment was based on just one of three separate iron ore deposits on the Kami property. Further resource statements and economic assessments would likely include one or both of the remaining two deposits.
Alderon registered the project with provincial and federal environmental regulators in October, 2011. The registration document contains provisions to increase planned production at the Kami project to 16 million tonnes of iron ore concentrate annually as part of a second-phase capital expansion. On December 5, 2011, the Minister of the Department of Environment and Conservation (DOE&C) declared an Environmental Impact Statement (EIS) to be necessary for the project. The appointment of a committee of regulators to guide the EIS process was announced by DOE&C on February 1, 2012. The company expects to complete a definitive feasibility study for the project by Q3, 2012.
Anaconda Mining Inc.
Profile
Anaconda Mining Inc. holds a 100% interest in the Pine Cove gold mine and mill located in the Ming’s Bight area on the Baie Verte Peninsula. The open-pit operation started producing gold in May 2008 but mill components did not operate as anticipated and considerable effort was put into renovating the mill to improve operating throughput and gold recovery rates.
An update issued by the company on October 6, 2011 provided a degree of confidence that mill operations are approaching design specifications with about 900 – 1000 tonnes of ore per day being processed. Drum filters at the back end of the mill have not been operating as expected. Replacement filters have been installed and are now operational and this should further improve mill performance. Currently defined resources and mill throughput are sufficient to provide a further six years of operation. The mine life could be extended depending on the outcome of exploration on the property. The operation, supported by company and contract employees, is expected to provide 66 person years of employment annually with yearly gold production of about 17,000 ounces.
Atlantic Minerals Limited
URL: http://www.atlanticminerals.com
Profile
Atlantic Minerals Limited is located at Lower Cove on the Port au Port Peninsula in western Newfoundland and operates limestone and dolomite quarries; a crushing and washing plant that produces chemical-grade high-calcium limestone, chemical-grade dolomite, and construction aggregates; and has deepwater ship-loading facilities. Total shipments from Lower Cove are forecast to increase from 2.7 million tonnes in 2011 to 2.9 million tonnes in 2012. Atlantic Minerals employs approximately 20 year-round and 90 seasonal employees.
Beaver Brook Antimony Mine Inc.
Profile
In 2008, Beaver Brook Antimony Mine Inc. reactivated the 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. In October of 2009, Hunan Nonferrous Metals Corporation (HNC), the largest antimony company in the world, acquired 100% equity of Beaver Brook Antimony Mine Inc. At the end of 2009, China Minmetals Corporation, China’s biggest metal trader, acquired 51% equity of Hunan Holdings Group (HNG), the state-owned parent of HNC. The state-owned Assets and Supervision Administration Commission of Hunan Province reserved the remaining 49% of HNG.
The stibnite ore is mined underground and fed to the 450 tonne-per-day mill, which uses a flotation method to produce a concentrate grading about 63%. The stibnite concentrate is trucked to Halifax for shipping to China. Antimony is mainly used as a flame retardant in plastics and textiles. Beaver Brook Antimony Mine Inc. employs approximately 100 year-round workers and 15 seasonal employees.
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 usually employs 15–20 people seasonally. Hi-Point has developed its Island Pond peat bog near the Gander Bay Highway for the production of additional horticultural peat.
Iron Ore Company Of Canada
Profile
Iron Ore:
The Iron Ore Company of Canada (IOC) started producing iron ore from its Carol Lake (Labrador West) project in 1962. Canada’s largest iron ore pellet producer operates several pits, a concentrator, a pellet plant at Carol Lake, port facilities in Sept-Îles, Québec, and a 420-kilometre rail line that links the mines and the port.
IOC’s 3-phase Concentrate Expansion Program (CEP), originally announced in 2008 was curtailed later that year due to the world-wide financial crisis. CEP was re-started in 2010 and Phase 1 of the expansion is currently undergoing operational testing. It is expected to increase total concentrate / pellet feed capacity to 22 million tonnes. Phase 2 construction will continue through 2012 with commissioning expected by Q1, 2013. It is expected to increase total concentrate / pellet feed capacity to 23.3 million tonnes. IOC’s production-related employment forecast for 2012 shows an increase of 195 positions over 2011.
IOC has not publicly announced a decision on CEP Phase 3 that would expand capacity to 26 million tonnes. The company is also considering a further expansion at the site that could increase concentrate production to 50 million tonnes or more annually. This expansion, called Project Genesis, is at a very early stage, hence detailed timelines and capital cost estimates are not yet available. Construction and operational employment would be significant if Project Genesis proceeds. First production from early phase(s) of Genesis, if sanctioned, could be expected by 2015.
Dolomite:
The Iron Ore Company of Canada has mined dolomite for making fluxed pellets in Labrador West since 1986.
In 2009, the company started mining at the Plateau dolomite quarry near the Javelin road. In 2011, production was 135,000 tonnes. Forecast production for 2012 is 160,000 tonnes.
Labrador Iron Mines Limited
URL: http://www.labradorironmines.ca
Profile
Labrador Iron Mines Ltd. (LIM) is the latest company to begin shipping iron ore from Labrador and the first new iron ore producer in the province since 1965. LIM reported its 2011 operating results in January, 2012. These results reflect LIM’s production ramp-up at the site which began in June, 2011. Iron ore mined in the period totalled 1.2 million tonnes; about 600,000 tonnes of product was delivered to Sept-Îles, of which 412,000 tonnes was shipped to China, under a transportation and marketing agreement with IOC. LIM’s first ore shipment consisted of direct-railing ore grading 64.9% iron.
The Silver Yards plant was shut down for the season in early November as wet processing is not planned in winter conditions. The plant start-up for the 2012 operating season is planned for May or earlier, subject to weather conditions. The company is reviewing its 2012 options for production and marketing of products and will conclude these arrangements before operations are re-started in the spring. The project is expected to provide about 180 person years of employment annually from 2013 onward.
LIM plans to mine 2.5 to 3 million tonnes of ore in 2012 which is expected to yield 2 million tonnes of saleable products. Expansion plans, subject to environmental assessment and permitting, could mean the addition of a new mine at the Houston deposits by 2013. This expansion project was registered with the Department of Environment and Conservation on December 22, 2011. Various development scenarios are being evaluated for these deposits; trucking to Silver Yards or construction of a separate plant are being considered.
Newfoundland Pyrophyllite
URL: http://www.tre.ca/Divisions/pyrophyllite/pyrophyllite.html
Profile
Trinity Resources & Energy Ltd., operates a pyrophyllite mine in Manuels, Conception Bay South, including adjacent deepwater loading facilities.
The company has modified its ALTIFILTM product it currently produces into an improved product called ALTIPLUSTM, a distribution-powder product of high-grade, refined pyrophyllite. It differs in that the quartz impurities have been removed using Sensor Based Ore Sorting (SBOS) technology. Using the simple physical property of ore colour, the sorter separates ALTIPLUSTM from ALTIFILTM.
The mine currently employs 8 people year round, with a projected 16 people year round for 2012.
Newspar
URL: http://www.canadafluorspar.com
Profile
Newspar, a partnership between Canada Fluorspar Inc. (CFI) and Arkema, is proceeding to reactivate the existing underground fluorspar mine at St. Lawrence, expand the existing mill, construct a new tailings management facility, and build a new deepwater marine terminal. CFI, publicly traded on the TSX Venture Exchange, was created through the amalgamation of Burin Minerals Ltd. and Rivera Capital Corp. Arkema is a global chemical company and France’s leading chemical producer.
In June, 2011, Arkema invested $15.5 million in CFI to acquire 19.9% of the company. A second level of investment was completed in October, 2011, whereby Arkema funded $60 million and CFI funded $14 million into Newspar. The mining rights and permits related to the Blue Beach mine and the Tarefare mine have been transferred into Newspar. CFI and Arkema will each receive a pro-rata share of the output at a price equal to the costs of production. Arkema will have the right to acquire, for a period of 10 years, approximately 20% of CFI’s share of the output at prices that include costs plus a fixed margin, and will have the option to acquire additional fluorspar from CFI at market prices. The Provincial Government has committed a $17-million repayable contribution to help CFI construct the port facility for the export of fluorspar concentrates.
In October of 2010 the project was released from further environmental assessment. In June of 2011, Roscoe Postle Associates Inc. (RPA) completed a pre-feasibility study and a National Instrument 43-101 technical report on the St. Lawrence fluorspar project. The Blue Beach North Vein and the Tarefare Vein contain 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 31.1% CaF2. Mineral reserves total 5.4 million tonnes at an average grade of 39.9% Ca F2. Newspar expects to start construction in 2012, and begin production in 2014. Annual production is projected to be in the range of 120,000 tonnes of acid-grade fluorspar for about 15 years. Approximately 150 full-time jobs are expected during operations. The Department of Natural Resources is reviewing the project development plan.
Rambler Metals and Mining Canada Ltd.
URL: http://www.ramblermines.com
Profile
RMM’s project involves mining and processing copper and gold-bearing ore from the Ming Mine on the Baie Verte Peninsula. A final feasibility study completed in late August 2011, suggests that the project will initially have a six-year mine life with 650 tonnes of ore processed daily. The project, that was fully permitted in March, 2011, is estimated to require about 158 direct employees when fully operational.
Commissioning of a new copper mill at Nugget Pond to process Ming Mine ore started in October, 2011. The copper mill is housed in a new building that is built next to the existing gold mill. In preparation for the copper mill commissioning, underground development at the Ming Mine, 40 km away, is in progress. The company is mining and stockpiling low-grade material from the Lower Footwall Zone with which to commission the new mill. This “live” commissioning will continue into calendar Q1, 2012. Successful commissioning will be followed by processing of ore from the 1807 zone where a resource of 432,000 tonnes grading 3.86% copper exists. This zone also contains gold and silver, much of which will report to the copper concentrate.
Initial processing priority is assigned to ore being mined from the 1806 zone, which carries higher than mine-average gold grade and lower than mine-average copper grade. This ore is taking the most economical processing route through the gold mill while RMM continues to commission the new copper mill. As of January 18, 2012 approximately 2446 ounces of gold have been recovered and it is RMM's intention to continue pouring gold every two weeks until the reserve inventory of the 1806 zone is exhausted.
Construction of a concentrate storage silo with a 9500 wet metric tonne capacity at Goodyear’s Cove in the town of South Brook is complete. Goodyear’s Cove is 144 km by road from the mill at Nugget Pond. The company has reached an off-take agreement with Switzerland based Transamine Trading for its copper concentrate; the first shipment is expected to depart the storage silo at Goodyear’s Cove in Q2, 2012.
Tata Steel Minerals Canada Ltd.
URL: http://www.nmlresources.com/
Profile
TSMC is a joint venture company owned by Tata Steel of India (80%) and New Millennium Iron Corp., a Canadian publicly listed junior mining company (20%). TSMC’s project in northwestern Labrador / Québec is developing iron deposits very similar to those of Labrador Iron Mines Limited.
TSMC’s Elross Lake project is split into two phases and each has been released from environmental assessment by the Department of Environment and Conservation. Construction of the work camp, a Phase 1 component, began in Q2, 2011. Site clearing for the plant is currently underway. A project Development Plan, and Rehabilitation and Closure Plan are currently under review by DNR.
TSMC expects to begin commissioning and ramp-up of the plant in Q3, 2012 with full processing capacity expected between November, 2012 and January 2013. Five and a half million tonnes of ore per year will be processed to produce about 4 million tonnes of iron concentrate. Eighty percent of the product will be sinter fines and twenty percent will be pellet fines. The project will operate year round and employ about 188 people.
Teck Duck Pond Operations
URL: http://www.teck.com/
Profile
The Duck Pond mine is located approximately 30 km south of the former Buchans mine in central Newfoundland. At start-up in 2007, 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 gold. This is an underground copper-zinc mine with annual production of approximately 650,000 tonnes. Teck Duck Pond Operations is currently scheduled to end mining in the first quarter of 2015. However, the on-going exploration program may extend the mine life.
Vale Newfoundland and Labrador Limited
URL: http://www.vbnc.com/
Profile
Vale Newfoundland and Labrador Limited (VNL) operates the Voisey’s Bay mine in Labrador. During the first three quarters of 2011, VNL reported production of 48,000 tonnes of nickel, 37,000 tonnes of copper, and 1137 tonnes of cobalt. These production levels were attained despite lost time due to the strike that ended in January 2011, and an additional two months to return to a regular workforce and schedule. These gains are the result of the concentrator running well and attaining a high level of ore production.
Employment for all aspects of the Voisey’s Bay Project including both Labrador and Long Harbour is estimated to increase from 3000 person years in 2011 to 3500 person years in 2012. This is a result of the construction work-force required for the commercial processing facility at Long Harbour. As of January, there were 2400 people working at Long Harbour. Peak employment at Long Harbour previously was projected to be reached in 2011; this is now revised to 2012.
At Long Harbour, the overall project status as of January 2012 was 59% complete, with engineering 97% complete, and construction about 30% complete. The current focus remains on concrete placement, steel erection, equipment setting and building cladding.
Wabush Mines
URL: http://www.cliffsnaturalresources.com/EN/aboutus/GlobalOperations/Documents/IronOreFactSheet.pdf
Profile
Wabush Mines started mining iron ore from the Scully Mine in Labrador in 1965. The mine is still operating and produces ore for a concentrating plant at Wabush, and a pellet plant and shipping facilities in Point Noire, Québec. Wabush Mines is 100 % owned and operated by Cliffs Natural Resources Inc.(based in Cleveland, Ohio, USA).
Wabush Mines produced about 3.2 million
tonnes of iron concentrate in 2011 and,
depending on market conditions, will gradually
increase production to 5 million tonnes annually
over the next four to five years. Employment at
the mine site is expected to increase from 460
person-years currently to about 500 in support of
the planned gradual production increases.
Substantial ore resources at the mine contain manganese in quantities that make the resulting iron concentrates unattractive to steel plant customers. Wabush Mines is addressing this problem by installing mill components that reduce the manganese content in the final iron concentrate to an acceptable level. The final plant reconfiguration will likely require 4 to 6 independent manganese reduction circuits. Two circuits were installed as of the end of 2011. The Manganese Reduction Program could help extend mine life beyond 2030.