Lalor and Reed mines officially opened – by Ian Graham (Thompson Citizen – September 19, 2014)

The Thompson Citizenwhich was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.  editor@thompsoncitizen.net

NDP Mineral Resources Minister Dave Chomiak attended official opening ceremonies for Hudbay’s Lalor and Reed mines in the Snow Lake area Sept. 16, saying the projects would create 373 jobs and pour millions of dollars into the local and regional economy.

“Mining has been an important part of Manitoba’s economy for decades and these new mines will produce real benefits for local communities including employment for more than 370 workers,” said Chomiak in a news release. “These are good jobs that will help improve living standards and create significant economic growth.”

The Lalor mine is 13 kilometres west of Snow Lake and contains gold, copper, zinc and silver and is expected to be in production until 2030 and beyond. The total budget for construction of the mine is $441 million and its ore will be processed at the refurbished Snow Lake concentrator, which now has a capacity of 2,700 tonnes per day.

The Reed copper mine, which was approved on Sept. 24 last year, is in Grass River Provincial Park, 45 kilometres south-southwest of Snow Lake, and is a joint venture between Hudbay and VMS Ventures Inc., 70 per cent owned by Hudbay. Chomiak said the copper reserves at the Reed Mine have an estimated value of $800 million. Highway 39. The mine, located on the southern side of Highway 39, is projected top produce 1,300 tonnes of copper per day and is expected to be in production for approximately five years, during which time 2.16 million tones of copper ore will be extracted and then trucked to and processed in Flin Flon, according to a project overview prepared by AECOM on behalf of Hudbay. At full production, the mine will provide 88 jobs, Hudbay has said.

“Northern Manitoba is the foundation of Hudbay’s success,” said Hudbay president and CEO David Garofalo. “The milestone of officially opening Lalor and Reed is the newest chapter in our long history here. Lalor and Reed reflect the talent and commitment of our workforce and the engagement and vision of the provincial government. Mining has contributed to the growth and diversification of the economy in this part of the province and Hudbay looks forward to our future here.”

Approval of the Reed mine was opposed by the Wilderness Committee – and environmental organization – as well as Mathias Colomb Cree Nation, and the Manitoba Green Party, which said it was a threat to caribou in the area. Manitoba Conservation received 185 comments from the public concerning the mine during the approval process, which raised concerns about its location in a provincial park and the impact it would have on wildlife and the natural environment.

Chomiak said that the new mines’ progression from discovery to production in less than seven years was indicative of the efficiency of Manitoba’s regulatory process.

“Manitoba has been recognized nationally and globally as one of the best places in Canada for exploration and mining,” said Chomiak. “Our government has worked hard to create a supportive environment for the mining industry. The recent establishment of the Minister’s Mining Advisory Council is an example of how industry, First Nations and government can work together to ensure everyone benefits from mining in Manitoba.”

The provincial government says mining and petroleum industries are the second-largest primary resource industry in Manitoba with capital expenditures on mining and petroleum developing reaching an estimated $1,4 billion in 2013, when the industries accounted for about seven per cent of the province’s gross domestic product (GDP) and 8.7 per cent of total exports. Mining and petroleum production in Manitoba was estimated to have a value of more than $3 billion in 2013.