Production falters at Nunavut gold mine after March 10 fire

The gym at Agnico-Eagle’s Meadowbank gold mine near Baker Lake has been set up as a cafeteria following the March 10 fire that destroyed its kitchen, cafeteria and adjoining offices. For now, the 175 workers still on site only eat a simple lunch there, which is prepared in the nearby exploration camp kitchen. (PHOTO/AGNICO-EAGLE)

This how Agnico-Eagle’s Meadowbank gold mine near Baker Lake looked in the early morning hours of March 10 as the remnants of the site’s kitchen and cafeteria continued to burn. The company now plans to set up a temporary kitchen so that the 300 workers who were evacuated can start returning to work and get the mine back up to full production. (PHOTO/AGNICO-EAGLE)

Agnico-Eagle’s Meadowbank gold mine near Baker Lake is still dealing with the aftermath of the March 10 fire that took out its kitchen, cafeteria and adjoining offices.

New facilities won’t be finished until next November, Denis Gourde, Aginco-Eagle’s regional manager for Nunavut, said March 17, a week after the fire forced the evacuation of 300 workers from the site.

The fire has also dealt the gold mine’s production a blow: operations in the pit have come to a halt.

The tonnage of ore that’s processed remains steady, but this ore comes from stockpiled supplies and is of a lower grade, he said.

So the mine’s gold production is down, Gourde said.

Fewer than 200 workers remain at the mine site, although, starting next month, the 300 workers who left March 10— and continue to be paid, will be progressively brought back.

“It will take us several months to get back to normal,” Gourde said. “For the moment, the priority is to install a temporary facility to be able to prepare food, so we can get staffing back to the 450 level.”

Millions of dollars of damage resulted from the early morning fire, he said.

Engineers are now determining the design and cost of a new kitchen, cafeteria and offices, but these won’t be built until after the resupply of materials next fall.

As a short-term solution, Meadowbank has ordered a kitchen from a supplier of temporary shelters used during disaster relief operations. This kitchen will be set by the end of March and be able to feed 450 to 500 people, Gourde said.

Until then, the gym will serve as a makeshift kitchen and cafeteria.

The 175 workers who are now on site eat breakfast and supper at the mine’s nearby exploration camp. They eat lunch, a simple meal of soup, sandwiches and dessert, in the gym.

“The moral of the team is very good, everyone’s pitching in and there’s a good spirit in spite of the circumstances,” Gourde said.

The best news for Agnico-Eagle is that price of gold continues to rise. The price for one ounce of gold stood at $ 1,403.32 on March 18, a per ounce price up by about $700 from last year, when the Meadowbank mine started production.