Environmental concerns raised about two Noranda projects

Environmental concerns about two mining projects in the U.S. were raised at the annual meeting of Noranda (TSE) in Toronto.

In Montana, Noranda affiliate Hemlo Gold Mines, through 60%-owned Crown Butte Resources (TSE), is developing the New World gold-copper-silver deposit just outside of Yellowstone National park. According to Noranda Chairman Alf Powis, $35 million worth of development work has gone into the project. Environmentalists fear ecological damage to parkland and are fighting the project. The negative publicity being generated by the opposition was pointed out by a Noranda shareholder from the U.S. at the meeting.

A suspended project in Wisconsin also came under fire. Current prices have rendered the Lynne zinc-silver project uneconomical and Noranda has closed its exploration office in the state. Lynne is the only deposit in Wisconsin Noranda will mine, “because we’ve stopped looking,” Powis said. Shareholders defeated a motion put forward by a nun and seconded by an Indian leader from the state, which sought a detailed environmental report on any mining operations and on the effects on the lives of the state’s native peoples.

Meanwhile, Noranda is hoping an improved global economy in 1994 will give the company a boost. The resources giant, which reported a net loss of $37 million for 1993, recorded a net profit during the first quarter of this year of $44 million (compared with a loss of $31 million for the same 3-month period in 1993).

The mining and metals division of Noranda, which turned a profit of $21 million for 1993, recorded first-quarter earnings of $17 million (compared with a loss of $3 million for the same 3-month period in 1993). Capital spending by Noranda Minerals in 1994 is expected to be near the 1993 level of $220 million.

A new mine in the Noranda group is the Louvicourt copper-zinc project, northeast of Val d’Or, Que., in which affiliated Novicourt (TSE) has a 45% interest. The project is set to begin producing concentrate during the fourth quarter, most of which will be shipped to Noranda’s Horne smelter at Rouyn-Noranda, Que.