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MINING in
NEWFOUNDLAND
and
LABRADOR
Winter 2018
Winter 2018
TABLE of
CONTENTS
Mineral Development Review . . . . . . . . . . . . . . . . . . . . . 1
Producing Mines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Developing Properties . . . . . . . . . . . . . . . . . . . . . . . . . 11
Inactive Mines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Geologist - Geological Survey
MINERAL DEVELOPMENT REVIEW
With its significant shipment values and Gross Value of Mineral Shipments
$ Millions
employment contribution, the Newfoundland 5,000
Non-Metals Other Metals Copper Nickel Iron Ore
and Labrador mineral industry continues to
be a key economic driver in the province. 4,000
This year, developing projects, such as Tacora
Resources’ reactivation of the Scully Mine, and
3,000
Canada Fluorspar’s St. Lawrence Project, are 2,000
expected to begin production, adding to the list
of producing operations in the province. 1,000
The gross value of mineral shipments for 0
2009 2010 2011 2012 2013p 2014e 2015e 2016e 2017e 2018f
Newfoundland and Labrador is forecast to total Sources: Department of Natural Resources and NRCan
$3.4 billion in 2018. This reflects a 5.7 per cent p: Preliminary; e: Estimate; f: Forecast
decrease from the 2017 estimated gross value
Mining Average Employment
and is primarily the result of a decrease in the Person Years
14,000
value of iron-ore shipments. Operations and Construction Construction Operations
12,000
Mineral industry employment in 2018 is 10,000
projected to be 6,111 person years. This is a 8,000
14.6 per cent increase from the 2017 estimated
6,000
5,335 person years. The increase is partly
attributed to an increase in employment related 4,000
to the developing projects. 2,000
0
2008 2009 2010 2011 2012 2013p 2014e 2015e 2016e 2017e 2018f
Note: Since 2012, Construction employment is segregated
Sources: Department of Natural Resources and NRCan
p: Preliminary; e: Estimate; f: Forecast
Mineral Exploration
Winter 2018 1
PRODUCING MINES
Vale Newfoundland and Labrador Limited the previous second quarter of the same year. In
July 2017, the plant successfully reached 75 per
Vale Newfoundland and Labrador Limited (VNL)
cent of monthly nameplate capacity.
operates a mine and mill in Voisey’s Bay, and a
hydromet nickel processing plant at Long Harbour.
Estimated employment for all aspects of the
The mine started operations in 2005, and
Voisey’s Bay Project, including the mine and
produces both nickel and copper concentrates.
processing plant, is anticipated to be 2,265 person
Through the first three quarters of 2017, VNL
years in 2018.
reported production of 32,700 tonnes of nickel,
24,300 tonnes of copper, and 1,030 tonnes of
The Voisey’s Bay Mine Expansion (VBME) Project
cobalt from Voisey’s Bay.
is on hold as parent company Vale S.A. has placed
its Base Metals Business, which includes all
Construction at the Long Harbour Processing Plant
Voisey’s Bay operations, in review, referencing poor
(LHPP) was completed in November 2016. The
business performance due to depressed market
LHPP is currently in month 14 of an estimated two-
conditions. Work surrounding the VBME Project
year ramp up to nameplate capacity. Production at
has not ceased altogether; however, during the
the LHPP reached a record of 8,300 tonnes in the
review period no new contracts will be approved.
third quarter of 2017, 15.3 per cent higher than in
Voisey’s Bay Ovoid Pit
Photo Credit: Vale Newfoundland and Labrdor Limited
2 Mining in Newfoundland and Labrador
Iron Ore Company of Canada IOC has begun development of the $79 million
Wabush 3 Project. The Wabush 3 Project is a new
The Iron Ore Company of Canada (IOC) is one of
open pit that will allow flexibility in providing iron
Canada’s largest iron ore producers, operating a
ore feed to its existing concentrator to achieve
mine, concentrator and pellet plant at Labrador
production at the mill’s rated capacity. Wabush
City, Newfoundland and Labrador. IOC first began
3 will provide a new source of iron ore to extend
mining iron ore in the Schefferville / Menihek
the operating life of its Carol Project.
area of Québec and Labrador in 1954, expanding
to Labrador West in 1962 where it has been
IOC mines ore from multiple open pits and has
producing at the Carol Lake project ever since.
added the Sherwood North Pit to maintain
IOC is strategically situated to serve the markets
production levels until the new Wabush 3 Pit
of the Great Lakes from its year-round port
becomes fully operational. In addition to these
facilities at Sept-Îles, Québec. A 418 kilometre
activities, IOC has registered the Magy Pit extension
rail line, Québec North Shore and Labrador
project for environmental assessment to support its
Railway, links the mine to the port and facilitates
ongoing operations.
the shipment of iron ore destined to markets
throughout North America, Europe, the Middle
Magy Pit is part of the existing Humphrey South
East and the Asia–Pacific region.
mining area and the extension covers approximately
25 hectares of land. As part of the extension,
existing waste rock and the on-site processing
facility will be used. Contractors will aid in the pit
development, but IOC workers will do the mining.
Once all approvals are in place, the company hopes
the project will be underway by July 1, 2018.
IOC Haul Truck
Photo Credit: Iron Ore Company of Canada
IOC has ore reserves sufficient for approximately
26 years at the current rate of production.
Production capacity at site is 23.3 million tonnes of
concentrate of which over 13 million tonnes can be
pelletized. Total concentrate production in the first
three quarters of 2017 was 15.4 million tonnes.
Annual operating employment in Labrador for
2018 is estimated at 1,925 person years.
IOC, Carol Lake Project
Photo Credit: Iron Ore Company of Canada
Winter 2018 3
Tata Steel Minerals Canada Ltd. industrial facilities at Pointe-Noire in Sept-
Îles. The investment will create facilities that
Tata Steel Minerals Canada (TSMC) operates a
can handle the largest iron ore carriers in the
high-grade iron ore mine in the Menihek area
world and facilitate the shipment of iron ore
of northwestern Labrador and is a joint venture
from the Labrador Trough to global customers.
between Tata Steel of India (77.68 per cent), a
Construction began in July, 2017 on a $15 million
large global steel producer; Ressources Québec
conveyor that gives access to the multi-user dock
(18 per cent), the Government of Québec
in the port of Sept-Îles.
investment agency; and New Millennium Iron
Corp. (4.32 per cent), a Canadian junior mining
TSMC plans to develop the Howse property in
company. Nine open pits in Labrador and two in
Labrador. This DSO deposit will be a low capital
Québec are to be developed over a 12 year mine
mining venture and will use TSMC’s adjacent
life. First production occurred in September 2013.
infrastructure. Open-pit drill and blast mining will
be used and extracted ore will be crushed and
TSMC’s iron ore deposits are Direct Shipping Ore
screened on site. Ore will be trucked less than 5
(DSO) with processing requirements of crushing
km to TSMC’s rail loop, and railed to Sept-Îles.
and screening to produce a marketable product
The company has estimated an 11 year mine
of sinter fines. A total of 59 million tonnes of
life. Howse Minerals Limited, which is a wholly
reserves have been measured for the project.
owned subsidiary of TSMC based in St. John’s,
In addition, the company has ten NI 43-101
was created for the purpose of developing the
compliant resource estimates totalling 78 million
Howse property. The project, conditionally
tonnes (Measured, Indicated and Inferred).
released from provincial EA, is still undergoing
federal environmental assessment with CEAA
On April 9, 2017, TSMC signed a Memorandum
currently reviewing public comments to finalize
of Understanding with Société du Plan Nord
the Environmental Assessment Report.
(SPN) and Québec Iron Ore (a Champion Iron
subsidiary) agreeing to develop and manage
Atlantic Minerals Limited
Atlantic Minerals Limited (AML) is located at
Lower Cove on the Port au Port Peninsula and is
a producer of chemical grade limestone, chemical
grade dolomite and construction aggregates. AML
has processing and shipping facilities on site and
has been operating for over twenty years. This
operation is projected to generate 120 person
years of employment in 2018.
AML is extending existing quarrying activities
into the White Hills area over the next 25 years.
The project was released from environmental
assessment in August, 2016. The annual
total production rate will increase from two
Tata Steel - Kivivic 2 Pit million tonnes a year to approximately three
Lorem Ipsum lorem Ipsum
Photo Credit: Tata Steel Minerals Canada Limited
4 Mining in Newfoundland and Labrador
Lower Cove Quarry - Atlantic Minerals Limited
million tonnes per year. The anticipated labour quarter of 2018, after which the operation will
requirements during the construction phase of transition into development of the Stog’er Tight
the quarry extension will be approximately 64 Deposit. Based on the NI 43-101 filed in 2015,
contract workers. The expansion would extend Stog’er Tight is estimated to contain indicated
existing operations for approximately 25 years mineral resources of 204,100 tonnes containing
based on the estimated annual production rate. 23,540 ounces of gold.
Anaconda Mining Inc. Anaconda entered into an agreement with junior
gold exploration company, Orex Exploration Inc.
Anaconda Mining Inc. (Anaconda) operates the
(Orex) on May 19, 2017. Orex’s principal property
Point Rousse Project near Ming’s Bight on the
at Goldboro in Guysborough County, Nova Scotia,
Baie Verte Peninsula. The project consists of the
consists of 37 contiguous claims (600 hectares),
Pine Cove gold mine and mill, the Stog’er Tight
of which Orex has owned a 100 per cent interest
Deposit, the Argyle Deposit and approximately
since 1988. Anaconda expects to accelerate the
5,800 hectares of prospective gold-bearing
development of the project by barging ore to
property. Anaconda is also advancing the
Pine Cove for processing and this is expected to
Goldboro project in Nova Scotia. In 2018,
lower project capital costs. On January 17, 2018,
Anaconda expects to generate 95 person years
Anaconda published a preliminary economic
of employment.
assessment of the Goldboro project, highlighting
positive economics for the project. Continued
Anaconda expects to complete mining in the
exploration work is taking place to determine
main pit at Pine Cove in the later part of the first
Goldboro’s mineral expansion potential.
Winter 2018 5
Pine Cove Pit - Anaconda Mining Inc 6 Mining in Newfoundland and Labrador
In June 2017, Anaconda received $2 million in and Argyle Deposit. On January 8, 2018, Anaconda
funding from Atlantic Canada Opportunities released an initial Mineral Resource Estimate (NI
Agency (ACOA) and the Department of Tourism, 43-101) for Argyle. The estimate highlighted an
Culture, Industry and Innovation (TCII) in support indicated resource of 543,000 tonnes containing
of an innovative approach to mining narrow vein 38,300 ounces of gold and an inferred resource
deposits. The ACOA loan of $1.5 million through of 517,000 tonnes containing 30,300 ounces of
the Atlantic Innovation Fund is conditionally gold. Anaconda is optimistic about Argyle and is
repayable upon the success of the project. continuing additional drilling to further define the
The $520,000 received through the Provincial extent and distribution of the resource.
GeoEXPLORE program is a grant. The funds will
help establish a research and development project Rambler Metals and Mining Canada Limited
that will prototype and optimize a new technology
Rambler Metals and Mining Canada Limited
that can cost-effectively mine steeply dipping
(RMM) owns and operates the underground Ming
narrow gold veins such as the Romeo and Juliet
copper-gold mine and Nugget Pond mill located
deposits near Pine Cove.
on the Baie Verte Peninsula and a port facility at
Goodyear’s Cove.
In an effort to increase mineable reserves beyond
2019, Anaconda is focusing on its Viking Project
Rambler Ming Mine Portal
Photo Credit: Rambler Metals and Mining Canada Limited
Winter 2018 7
Rambler, Goodyears Cove, Concentrate Storage and Shipping
Photo Credit : Rambler Metals and Mining Canada Limited
RMM released its operating metrics for the third execution of Phase II, RMM will subsequently
quarter of 2017 on November 20, 2017. The transition the operation into Phase III, with the
Nugget Pond mill produced 3,681 tonnes of goal to increase production and mill throughput to
copper concentrate during the quarter, containing 2,000 tonnes per day.
1,005 tonnes of saleable copper and 923 ounces
of saleable gold. RMM expects to generate 185 On June 27, 2017, RMM announced the
person years of employment in 2018, the same commencement of an exploration drilling
level as the previous year. program targeting the depth extension of both
the LFZ and the Ming South massive sulphide
RMM is continuing the transition from its Phase zone beyond the known mineralized trend.
I high-grade, massive sulphide Ming Mine to Results from the second hole drilled were
Phase II integration with low-grade ore from released in November, and demonstrate that
the Lower Footwall Zone (LFZ). RMM’s goal is the LFZ mineralization does continue beyond
to increasingly blend amounts of LFZ ore with the company’s defined mineral reserves and
the massive sulphides from the Ming Mine to increases in grade and thickness with depth.
increase production to at least 1,250 tonnes per RMM will continue with this exploration work.
day. During November 2017, the Nugget Pond
mill averaged production of 1,221 tonnes per Barite Mud Services Inc.
day. The LFZ project will extend the life of the
Barite Mud Services Inc. produces a high-grade
mine to 2036. The Phase II expansion is fully
barite. Barite is extracted by dredging from
funded through an investment from CE Mining II
ASARCO’s historic tailings pond in Buchans
Roma Limited, and a repayable contribution from
and processing the tailings on site. The product
ACOA’s Business Development Program. Upon
8 Mining in Newfoundland and Labradoris sold into the local offshore oil and gas Galen Gypsum Mines Limited
exploration industry. Approximately 40,000 to
The Coal Brook Gypsum deposit is located in the
50,000 tonnes of tailings will be reprocessed to
St. George’s Bay area of western Newfoundland
yield an annual production of 10,000 to 20,000
and is currently owned by Galen Gypsum Mines
tonnes of barite for 15 years. The operation
Limited (Galen). Galen restarted gypsum mining
has winter constraints and employs 12 people
operations in July 2017 after production was last
seasonally plus 4 full time employees.
recorded at the mine in 2009.
Hi-Point Industries (1991) Ltd.
Galen’s seasonal gypsum operation is projected
Hi-Point Industries (1991) Ltd. is a local to generate 20 weeks of employment per year for
manufacturer of quality environmental and eight workers. This equates to three person years
horticultural peat products. Its patented of employment per year.
Oclansorb is an organic, nontoxic, nonabrasive,
lightweight industrial oil absorbent used Canada Fluorspar (NL) Inc.
worldwide as a first response for handling
The Canada Fluorspar (NL) Inc. (CFI) project,
hydrocarbon spills. Oclansorb is made from
located in St. Lawrence, consists of open pit and
naturally occurring blonde sphagnum peat moss
potential underground mines, a concentrator,
harvested near Bishop’s Falls. The operation
waste rock piles and a man-made tailings facility
expects to generate 22 person years of
with sufficient storage for the ten year mine life.
employment in 2018.
Harvesting Peat - Hi-Point Industries (1991) Ltd.
Winter 2018 9Canada Fluorspar Road from Grebes Nest Pit to Mill
Photo Credit: Canada Fluorspar (NL) Inc.
Construction began in early 2016 and is now to the CFI project. The repayable contribution
considered complete. Project capital costs were is being provided through ACOA’s Business
estimated at approximately $250 million. Development Program, and will help CFI with
Mining will begin with the development of the the acquisition and installation of processing
open pit mine known as the AGS Vein, producing equipment at the mine.
up to 200,000 tonnes of fluorspar concentrate
per year. The project will generate 141 person Trinity Resources Ltd.
years of employment in 2018. CFI anticipates
Trinity Resources Ltd. is a privately held company
that production will commence in the near term.
operating the pyrophyllite mine and milling
operation located in Conception Bay South. It also
On March 9, 2017, CFI accepted a repayable
sells waste rock for use as aggregates in white
loan of $17 million from TCII, to assist the
cement. The company ships product from its own
company in advancing the project. In addition,
six-acre ship loading facility located within 6 km
on March 15, 2017, the federal government
of the mine, and expects to generate 15 person
announced a spending commitment of $5 million
years of employment in 2018.
10 Mining in Newfoundland and LabradorDEVELOPING PROPERTIES
Tacora Resources Inc. concentrate will be sold as feed for sinter plants
and pelletizing plants.
On July 19, 2017, Tacora Resources Inc. (Tacora)
announced that it closed the acquisition of
On February 5, 2018, Tacora filed for an initial
assets associated with the Scully Mine, located
public offering on the Toronto Stock Exchange
in Wabush, Labrador through the Companies
(TSX). The company estimates that restarting
Creditors Arrangement Act (CCAA) process.
the mine will require $205.5 million in capital
The mine was formerly owned by Cliffs Natural
expenditures. Aside from the equity raised from
Resources who idled the mine in February 2014
the IPO, Tacora is also planning to raise money via
and closed it in October of the same year.
debt markets. Production is expected in the fourth
quarter of 2018. Mineral reserves are estimated at
Tacora is an iron ore mining and development
443.7 million tonnes at an average grade of 34.8
company focused on the acquisition and
per cent iron and 2.58 per cent manganese
revitalization of iron ore assets. Tacora proposes
to reactivate the Scully mine and mill and, once
Manpower requirements are projected to vary over
in full operation, produce six million tonnes of
the life of mine with operations personnel ranging
concentrate annually. Tacora has entered into a
from 128 to a peak of 147 and mine maintenance
long term (five-year) offtake agreement with Cargill,
varying from 48 to 67. Geology and engineering
an international metals supply chain company, for
jobs remain steady at eight and nine respectively.
100 per cent of its concentrate product. Iron ore
INACTIVE MINES
Teck Duck Pond Operations At its peak, the mine employed over 350 people.
Rehabilitation of the mine site has started and
Teck Duck Pond Operations (Teck) officially
will be completed by 2018 followed by a period
closed on June 30, 2015. The mine started
of environmental monitoring. A joint closure
producing copper and zinc concentrates in 2007
committee is made up of representatives from Teck,
and exhausted the mineral reserves over an eight
the Department of Natural Resources, and the
year mine life as originally planned. The project
Department of Municipal Affairs and Environment.
was located approximately 30 km southeast of
Millertown and consisted of two small open pits,
Current plans are for the mill to remain and be
an underground mine, a concentrator (mill), tailings
maintained in care and maintenance. If the mill is
facilities and a 100-person operations camp.
repurposed it will be available in good condition for
Concentrate was trucked to a storage and shipping
future use. Conserving the mill is an effort to create
facility in St. George’s and sold to smelters in North
new employment and economic opportunities in
America and overseas.
the area.
Winter 2018 11Labrador Iron Mines Ltd Beaver Brook Antimony Mine Inc.
Labrador Iron Mines Limited (LIM) has not Beaver Brook Antimony Mine Inc. ceased
undertaken any mining operations since 2014, production in late 2012 at its mine near Glenwood.
initially due to continued operating losses followed A combination of falling commodity prices, lower
by low iron ore prices. The company owns the than expected ore grades and high operating costs
Houston deposit that has a 43-101 compliant led to the operation being placed into care and
resource estimate of 40.6 million tonnes grading maintenance mode. The mine employed more
57.6 per cent iron. than a hundred people at full production with
the operation of a 450 tonne per day mill. The
LIM is focused on care and maintenance of its company remains hopeful that operations will
mineral properties. LIM has maintained its mineral restart once ore prices improve.
claims in good standing, has carried out progressive
rehabilitation work as required, and has continued Nine people are still employed at the operation,
to conserve cash through minimal expenditures. working in maintenance, geological, financial and
Once financing is secured and economics are security roles.
suitable, LIM maintains it will resume operations.
Labrador Iron Mines (Idled -2013)
Photo Credit: Labrador Iron Mines Ltd.
12 Mining in Newfoundland and LabradorWinter 2018 13
Cover Photo: I
ron Ore Company of Canada - Mine at Night
Photo Credit: Iron Ore Company of Canada
Key Contacts
Minister 709.729.2920
Deputy Minister 709.729.2766
Assistant Deputy Minister 709.729.2768
Director, Mineral Lands 709.729.6425
Director, Mineral Development 709.729.6379
Director, Geological Survey 709.729.3419
Mining Industry Facilitator 709.729.5811
Natural Resources
Mines Branch
Government of Newfoundland and Labrador
50 Elizabeth Avenue
P.O. Box 8700
St. John’s, NL
A1B 4J6
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