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Major new mining projects for Nunavik have stalled
Dig below the surface and you may find that hope and fear are the underlying themes at this week’s Quebec mines conference, Nov. 17 to Nov. 20, in Quebec City.
The Quebec mining sector faces sharply decreasing commodity prices at a time when the Quebec government wants to promote resource development, the centre-piece of its long-touted Plan Nord, relaunched in 2014 by the new Liberal government.
But low gold prices and falling demand for nickel and iron in China means the 2,000 delegates expected at the conference, whose sponsors include Quebec’s department of resources and energy, its mining association and other industry players, may end up bemoaning a bust in resource development rather than applauding its boom.
Key major mining projects in Nunavik have already stalled. Oceanic Iron Ore Corp., whose company officials recently accompanied Quebec Premier Philippe Couillard on his junket to promote Plan Nord in China is still looking for a Chinese partner for its ambitious Hopes Advance iron ore project near Aupaluk on Nunavik’s Ungava Bay.
The iron mine project, which looked so promising in 2013, has enough resources to produce between 10 million and 20 million tonnes of high-grade iron ore concentrate product every year for up to 48 years.
But a Nov. 14 update from the company doesn’t strike an encouraging note: it says management remains “positive on the prospects for securing a strategic partner.”
It goes on to say “management also recognizes the current challenges facing the iron ore sector, and the industry more generally, and has implemented, and will continue to implement, cost savings initiatives to preserve cash.”
These cuts would include salaries and a planned de-listing from the OTCQX marketplace for trading over-the-counter stocks worth where, on Nov. 17, Oceanic’s stock was worth only 13 cents a share.
And then there’s Lac Otelnuk -— only two years ago on a fast-track to production — now still working toward feasibility stage.
The mine project’s promoters, Adriana Resources Inc., whose majority owner is Chinese steel giant Wisco, have said they want to produce 50 million tonnes of iron a year or more from Lac Otelnuk for up to 100 years.
But to do that, they’ll have to go through a costly environmental and social review of the project — and then sink $13 billion into building the mine complex and the necessary infrastructure, including a railway.
As well, the Nunavik Nickel mine, which sent out some copper concentrate from its Nunavik Nickel project in 2013 — and yet another shipment of nickel through the Northwest Passage this past September.
But little is known about the company’s future plans for Nunavik Nickel — and nothing can be found on its website, where a marked “Nunavik Nickel Project” leads to a blank page in all three of the website’s languages.
For the rest of this article, click here: http://www.nunatsiaqonline.ca/stories/article/65674Quebec_mining_giants_plan_nord_promoters_meet_as_industry_slumps/