FACTS’N’FIGURES — Mine openings and closures

As a result of recoveries in metal prices in the second half of 1994, the year ended on a positive note for mining in Canada. A total of 12 mines opened or reopened in 1994, while nine closed or suspended operations. This resulted in a net increase in the number of mine openings over mine closings for the first time since 1989.

Of the openings and reopenings, two were new mines (one base metal and one uranium) and 10 were reopenings (five precious metal and five base metal). Of the closures and suspensions, six were closures (four precious metal and two base metal) and three were suspensions (one precious metal, one base metal and one gypsum). Base metal mine reopenings were the predominant events in 1994.

The most important new mines in 1994 were the Louvicourt copper-zinc-gold mine in Quebec, and the Eagle Point uranium mine in Saskatchewan. Among the most significant reopenings were: the Heath Steele zinc-copper-lead-silver mine in New Brunswick; the Macassa gold mine and the Garson nickel-copper mine in Ontario; the Afton-Ajax, Gibraltar and Similco copper mines and the H-W and Lynx zinc-copper-silver mines in British Columbia; and the Colomac gold mine in the Northwest Territories.

The Flat Bay gypsum mine in Newfoundland, the Lockerby nickel-copper mine in Ontario, and the Golden Bear gold mine in British Columbia were the only mines that suspended operations in 1994.

The Stall Lake copper-zinc mine and the Chisel Lake zinc-copper mine, both of which are in Manitoba, and the Equity Silver silver-gold-copper mine in British Columbia were the most notable closures.

Of the nine mine closings, six were due to ore depletion. The decision, in June, to suspend operations at the Lockerby was attributable to high costs and low metal prices at the time. Falconbridge, which owns the mine, plans to study the cost of deepening the mine shaft to reach higher-grade ore at depth.

The suspension of production at the Golden Bear in September was the result of ground stability problems. Most workers at the main mine have been redeployed to work on nearby company projects, such as the Kodiak A deposit, which is due to come on-stream this year; the Kodiak C, D and Grizzly deposits; and the newly discovered Cub deposit.

Faced with high costs and a shortage of reserves, Domtar decided to suspend the gypsum operation at its Flat Bay mine. The mine was a seasonal operation and, as a result of the closure, 40 jobs were lost.

Many advanced projects, already in the final stages of development, are poised to begin production in 1995. At least 10 new mines and three reopenings are expected to take place in 1995. With another 19 new mines (16 new and three reopenings) expected to come on-stream, the outlook for 1996 is even brighter.

This year’s expected newcomers include: the Nugget Pond gold mine in Newfoundland; the Eastmain gold mine and the Mobrun 1100

zinc-copper-gold-silver mine (now open) in Quebec; the Eagle River gold mine in Ontario; the New Britannia gold mine in Manitoba; the Sheerness coal mine in Alberta; and the Eskay Creek gold-silver-zinc-lead-copper mine (now open), the Golden Bear (Kodiak A) gold deposit and the QR gold mine in British Columbia. The Paymaster and the Madsen gold mines in Ontario, together with the Faro zinc-lead-silver operations in the Yukon, are also poised to reopen in 1995.

The Island Copper copper-molybdenum mine on Vancouver Island, which originally planned to close in 1996, may shut down before the end of 1995 as a result of ore depletion. Mining at the British Canadian and Beaver asbestos mines in Quebec is also slated to be suspended this year.

Mining in Canada is still in an early recovery stage. The possible extent of such a recovery is unpredictable because much of Canada’s mineral output is exported and is therefore dependent on world market prices.

— The author is with the mining sector of Natural Resources Canada.