Whitehorse, Yukon — Despite a rich mining heritage, 2,700 known mineral occurrences, and 80 deposits with known reserves, there is no longer a single producing mine in the Yukon. That’s a situation the government wants to change now that devolution has given the territory control over its resources and the ability to collect royalties and other revenues that previously went to federal coffers.
The recent Opportunities North 2005 conference was designed to put the spotlight on the Yukon’s diversified resource potential, and if the upbeat mood of delegates was any indication, much progress has been made to attract new investment and revive mining in the territory.
That’s a dramatic shift from five years ago, when the New Democratic Party government focused more on expanding parks and protected spaces than on economic development. While more than 20% of the land mass was “protected” from development, many developers and almost 10% of the 30,000 residents left the territory for opportunities elsewhere.
With a more balanced government in place, the economy and population have rebounded. Mineral exploration spending has rebounded too, and could top $50 million this year, more than double spending in 2004, and well above the $8 million spent five years ago.
On the development front, five companies are vying to be the first to open (or reopen) a mine in the territory since the 2001 closure of the Brewery Creek gold mine near Dawson City. The projects going through the permitting process are diversified, and would produce coal, gold and silver, copper, zinc, molybdenum and other base metals.
Premier Dennis Fentie assured delegates that since devolution took effect April 1, 2003, the government has taken numerous steps to restore certainty to the once-battered resource sector.
“The North is coming of age,” Fentie said. “We are now masters in our own house.”
Fentie and Alaska Governor Frank Murkowski also announced joint transportation and infrastructure initiatives, including access to tidewater shipping, a “rails to resources” program, and oil-and-gas pipelines that would link northern producers to southern markets.
“We are working with the Alaska government to ensure Yukon has port access in Skagway and Haines,” Fentie told delegates attending the 2-day conference.
“We will respond to your concerns for access to tidewater,” Murkowski replied in his remarks. “And we’re so enthused about our ‘rails to resources’ proposal that we want to take it on a road show to Washington and Ottawa.”
Joint access
The Alaskan Governor envisages a trans-border, multi-use corridor along the existing footprint of the Alaska Highway. While he favours the pipeline already proposed for this corridor, Premier Fentie believes both proposed pipelines (Alaska Highway and Mackenzie Valley) will be needed over the long term. Setting that issue aside, both men agreed that joint-access infrastructure would provide economic benefits to all Northerners, including native groups and corporations.
“You get strong economies from private-sector resource development,” Murkowski said. “You don’t get it from government. The difference between now and a hundred years ago is that we’re not going to be exploited. Resource development can be done responsibly.”
On its own, the Yukon government is looking to address energy needs for future resource development. The existing hydropower grids have considerable excess power that can be redirected to resource development, particularly if the two main grids are interconnected. Studies and consultations with resource companies are under way to bring this goal to fruition.
Permitting process
The government has also taken steps to help companies navigate the permitting process in the Yukon, which has changed since devolution through new legislation intended to mirror previous federal legislation. The project management process includes a Deputy Minister Oversight Committee and the appointment of major project co-ordinators for advanced projects. One goal is to help companies through the new Yukon Environmental and Socio-Economic Assessment Act (dubbed YESAA), which replaces the previous Canadian Environmental Assessment Agency (CEAA). Companies must still obtain permits, etc., from the appropriate regulatory agencies, as YESAA isn’t a decision-making body. Instead, it makes recommendations that are then considered by the regulatory bodies, and also provides certainty on timelines to developers.
Industry response to YESAA has been mixed, with some companies viewing it as an extra layer of bureaucracy with no real decision-making powers. Others say the process helps companies with community consultation, while providing feedback from stakeholders in return. The government says the public process helps Yukon residents find a balance between resource development and environmental protection.
New projects
The proof will be in the pudding, with a number of resource companies vying to develop the next mine in the Yukon. The government has appointed project co-ordinators for five projects to date, including the following:
– The Wolverine project owned by
– The Carmacks copper project owned by
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– The Red Mountain molybdenum project 80 km northeast of Whitehorse is expected to move into the underground exploration and development stage next year. The project is owned by Toronto-based
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Numerous other projects are expected to advance to the permitting process in the coming year. Among the contenders is
One of the larger, previously kn
own deposits being revived is the Howard’s Pass zinc-lead deposit in the Selwyn basin of eastern Yukon. The project is wholly owned by
To prove the point, Pacifica is carrying out a $3.5-million program to assess the overall potential of the project, and to define a near-surface resource for open-pit mining.
As with Yukon Zinc’s Wolverine project, Pacifica is examining some innovative optimization techniques to improve the economics of the Howard’s Pass project, including the use of dense media separation as a pre-concentration step prior to milling. Test work on this front has been successful, and more work is planned.
Howard’s Pass has infrastructure challenges too, but Meade’s strategy is to get the Wolverine mine up and running successfully before turning his attention to proving that Howard’s Pass could become one of the largest zinc mines in the world.
A related company,
Most gold exploration programs in the territory are focused on the Tintina belt, stretching across central Yukon into Alaska. Some past-producing mines elsewhere are getting a second look, including the Ketza River gold mine now held by
The Opportunities North conference also stressed the advantages of developing partnerships with native communities and corporations. To name but a few such agreements, Cash Resources has signed a letter of understanding with the Champagne and Aishihik First Nations, while Yukon Zinc has a comprehensive participation agreement with Ross River Dena Council, which represents the Kaska Nation.
And last but not least, the Yukon government reassured placer miners that they too, are part of the territory’s mining renaissance.
“We acknowledge the contributions of the placer mining industry,” said Premier Fentie, “and we’ve developed a policy so placer mining continues its historic contribution to the economy.”
‘The North is coming of age: We are now masters in our own house.’
— Yukon Premier Dennis Fentie
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