A northern regulator has approved a controversial lead-zinc mine in a national park reserve and world heritage site. The Mackenzie Environmental Impact and Review Board has recommended federal Northern Development Minister John Duncan give the final okay to Canadian Zinc Corp. (CZN-T0.760.068.57%)’s Prairie Creek mine in the Nahanni National Park Reserve.
“I'm very happy,” said Canadian Zinc president John Kearney.
“We hope with this positive report that the timelines can now move quickly.”
Mr. Kearney said he didn't anticipate any problems meeting the conditions recommended by the board, which involve improving water storage, tailings management and ore concentrate transport.
The mine in the Northwest Territories has been bitterly opposed by environmentalists and the board's approval was not unanimous.
Two board members said the majority who ruled in favour of the mine relied too heavily on company promises that weren't backed up by solid plans. They also said not enough weight was given to aboriginal concerns about water quality.
Prairie Creek flows into the Nahanni River, one of Canada's most scenic wilderness rivers and a global destination for canoeists. The area is prime habitat for Dall sheep, woodland caribou and grizzly bears.
UNESCO declared the area a world heritage site in 1978.
Much of the bedrock under the land is highly permeable, which makes it vulnerable to any type of spill or contamination.
The mine property was completely surrounded by the Nahanni National Park Reserve when it was expanded by then-environment minister Jim Prentice in 2009. However, the company's mineral rights to the property were preserved.
The board said the underground mine, which was largely constructed in the 1980s but never operated, wouldn't pose any significant environmental hazard.
“We're satisfied that the project can be operated and closed with minimal impacts on the environment,” Mr. Kearney said. “We have designed this with the highest standards and the best protection in mind.”
Much of the mine infrastructure needs to be updated or replaced, including the power plant and water treatment facility, he acknowledged. Approval to upgrade the road to the site was granted previously.
Mr. Kearney said benefits agreements are in place for the two closest aboriginal communities of Nahanni Butte and Fort Simpson. An agreement with the territorial government commits Canadian Zinc to hiring 60 per cent northerners and 25 per cent aboriginal staff.
The project will now go before the Mackenzie Valley Land and Water Board for specific construction permits.
“They deal with all the conditions and the detail of the permits,” Mr. Kearney said.
If all goes smoothly, construction could begin late next year with production by late 2013.
The Prairie Creek deposit contains zinc, lead and silver. Output will start at 600 tonnes a day and could double over time.
The company estimates building the mine would create 170 jobs, with about 220 jobs during the lifespan of the mine — expected to be at least 20 years.
Origin
Source: Globe
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