N.W.T. weighs whether to up Cantung mine clean-up deposit
Water licence changes for new tailings ponds tied to increase in security
The N.W.T.'s environment minister is expected to make a key decision this week about the territory's Cantung mine — a decision the mine's owner has said could have "grave implications" for the already-imperilled operation.
The mine is located in the N.W.T.'s Dehcho region, near the border with Yukon, and the mine is accessed by road through Yukon.
North American Tungsten needs its water licence for Cantung changed to account for the proposed addition of three tailings storage areas, and a plant to process those tailings.
But the proposed changes to Cantung's licence include one major caveat: increasing the amount of security North American Tungsten must pay to $30.9 million from $11.7 million. Security refers to the money the company must post to the territorial government to cover the estimated cost to clean up the mine should the company prove unable to do so.
In a recent letter to N.W.T. Environment Minister Michael Miltenberger, North American Tungsten president Kurt Heikkila said the proposed increase has "unintentionally impaired [the company's] access to capital needs for operations."
He added that the change, if approved, would put 250 jobs and $80 million to the Northern economy in jeopardy.
Decision expected by Saturday
North American Tungsten could not be reached for comment.
Yellowknife MLA Bob Bromley raised the issue of Cantung's security in the legislative assembly last week. He says Miltenberger should approve the recommended increase.
"Securities are often generally underestimated," Bromley said.
"Companies will lobby of course to have them reduced. I want to make sure that responsible ministers know that the people of the N.W.T. do care where their hard-earned taxes go."
Miltenberger's decision is expected by Saturday.
If the security is upped, it would be just the latest source of financial pressure for North American Tungsten. Earlier this month the company announced the temporary layoff of 80 Cantung employees.
The company cited depressed tungsten prices and "a number of operational issues," though the only specific operational issue mentioned was a related to the mine's power supply.