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Strateco Resources Inc. will probably know by month’s end whether it must shut down its Matoush uranium mining project 275 kilometres North of Chibougamau because of a Quebec government moratorium that freezes underground exploration indefinitely.
The Ministry of Sustainable Development, Environment, Wildlife and Parks has decided not to issue a certificate of authorization for the Matoush project until the province’s Bureau d’audiences publiques sur l’environment has submitted its report on the uranium mining industry’s activities in the province.
“That means there will be lengthy delays and even more uncertainties about the high-grade Matoush project after $123 million of investment and seven years of solid exploration and development,” CEO Guy Hebert said.
The Canadian Nuclear Safety Commission, the federal regulator, earlier approved Strateco’s move to drill underground to 300 metres depth, he said (interview). “The Commission supervises every exploration and development step you take and it has ruled Matoush is safe with today’s technology,” he added.
Strateco has followed up by asking Quebec Superior Court to issue a “safeguard” order requiring the Marois government to pay $420,000 to almost $800,000 monthly from May through at least September to keep the Matoush campsite open and to authorize an underground drilling program.
“The decision, hopefully, will come by month’s end, but if it’s denied we’ll have no alternative but to shut down the camp, liquidate all the equipment and prepare the site cleanup,” said Hebert, 63, a well-known Quebec mine developer.
“We’ve laid off 16 more workers, put management on a four-day week and I’ve taken a 60 per cent salary cut myself … the management team must be kept together to retain your operating licence,” he added.
He said Matoush also faces jurisdictional issues and Strateco does not have enough cash to handle the wind-down without winning the safeguard order. If refused, the company will not only go ahead with the camp shutdown but also prepare other legal moves.
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