New mine to bring Nunavik hundreds of jobs

Hundreds of jobs could be in store for Nunavik when the region’s second major mine project becomes reality.

Canadian Royalties, developer of the Raglan South nickel deposit, recently wrapped up its scoping study, a 192-page document on technical and economic aspects of its project.

This study says up to 400 workers would be hired to help construct Raglan South.

Canadian Royalties says it wants to hire as many Inuit as possible during the construction phase, and the company’s exploration and business development manager, Bruce Durham, said he sees continuing opportunities for above-ground mine workers, truck drivers and heavy equipment operators when the mine’s four open pit mines go into production.

Meanwhile, Canadian Royalties has met with Makivik Corporation, the landholding corporations, and Nunavik’s co-op network about possible collaboration.

“We would like the Inuit of northern Quebec to be partners or shareholders in some way shape or form,” Durham said from the company’s office in Val d’Or. “We would like to see Inuit involved as much as possible and to have them to feel part of the team.”

There’s no “definite agreement” yet with any Inuit parties, Durham said, although a memorandum-of-understanding of collaboration has been signed with the largest nickel producing company in China. A delegation from China is planning to visit the site this summer.

Canadian Royalties also needs “some cooperation with Falconbridge,” the owner of the nearby Raglan nickel mine.

That’s because Canadian Royalties hopes to strike an agreement to share existing infrastructure at Raglan, including roads, the Deception Bay port, and Donaldson airport. This will cut costs and limit the environmental impact for the new Raglan South mine.

Next month, Canadian Royalties starts its feasibility study for Raglan South, located about 90 kilometres west of Kangiqsujuaq, and 15 km. due south of Falconbridge’s Kattiniq operations.

This study will be followed by an environmental impact assessment for the Raglan South mine early in 2007. If the project passes scrutiny and all the environmental permits and financing fall into place, construction will start as early as the summer of 2008, and last two years.

Raglan South will consist of four open pit mines at the Mesamax, Expo, Mequillon and Ivakkak deposits. These are capable of producing 47,000 to 84,000 tonnes of nickel concentrate and 26,000 to 35,000 tonnes of copper concentrate a year for 10 years.

When in production, the mine will create 220 jobs, generate a payroll of $14 million a year, and create another 400 indirect jobs. Jobs for operational workers, such as labourers, heavy equipment operators and truck drivers will range from $25 to $33 an hour. Technical jobs will pay even more.

The plan is for Raglan South to be a nine-months-a-year operation. Ore processing in the mill will go on 12 months a year, but mining in the open pits will only take place 36 weeks a year.

This means most workers will have three months off, as well as a choice of rotations in and out of the site during the work period.

Raglan South will make money, says the scoping study. After four years, all costs will be covered and it can expect to generate $299 million after operational costs over its 10-year lifetime.

The mine could make double that amount of money, depending on the price of nickel and other metals.

However, to cut costs, Canadian Royalties is looking at alternatives to using diesel-generated power.

“With energy prices being what they are, one of the ways we see to optimize the mining process and keep prices down is by using wind power, so we’re in the process of shipping up a tower so we can gauge the wind in more detail,” Durham said.

A preliminary estimate shows the company could save up to $3 per tonne of ore, although putting up a wind farm could cost $100 million.

Around the Raglan South site, there are few sites of archeological interest, according to the scoping study.

The study points out that the mine project will improve access to Pingualuit Park, through a new 25-kilometer road planned to run from the Expo-Ivakkak properties.

The study says the main environmental impacts from Raglan South will be a “potential increase in the level of dust particles caused by road traffic, mining activities and wind erosion.”

This summer Canadian Royalties is spending $6 million on more studies and exploration at Raglan South.

Durham said this summer, as in the past, the company is hiring workers from Kangiqsujuaq to work with them out on the site.

“We enjoy working with these guys,” Durham said. “They’re part of the team.”