2 days ago
- Business
- Winnipeg Free Press
Mines hit with production stoppages, reductions in face of wildfires
Production and exploration at some Manitoba mines has ground to a halt as staff evacuate and wildfires rage.
Hudbay Minerals paused operations at its gold and zinc mine at Snow Lake, it told investors on Wednesday. The underground mine has a daily mill capacity of 5,300 tonnes.
Most employees have left the area; the Town of Snow Lake was issued a precautionary evacuation notice on Tuesday. Essential Hudbay staff have remained to assist with emergency activities, the company said, adding the workers have been authorized by emergency services.
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Some mining sites in the Snow Lake area have evacuated workers because of raging wildfires.
'(Hudbay) believes its infrastructure and facilities in Snow Lake and Flin Flon are well-protected from the wildfires and have a low risk of being damaged,' a note to investors reads.
It had reduced production levels as fires spread near Flin Flon. Hudbay sites have natural fire barriers, a spokeswoman said without elaborating.
Hudbay said it's tabbed $1 million in direct financial support for its employees forced to evacuate. The money is meant to cover costs incurred as staff find places to live.
Hudbay has also deployed firefighters and is creating a community relief donation fund where it'll double the amount donated by its staff; the company has other mines in British Columbia and Peru.
It doesn't expect the stoppage to have any material impact on its annual production targets, spokeswoman Sara Pearson wrote in a statement.
Meanwhile, Alamos Gold told the Northern Miner it's paused operations at its Lynn Lake gold project. The Toronto-based company broke ground on the mine in March.
The Town of Lynn Lake was given evacuation orders on May 27.
The Tanco mine, one of Canada's two lithium mines, was temporarily shuttered last month. It resides near the Whiteshell Provincial Park; most of its employees live in Lac du Bonnet and Pinawa.
Neither Alamos Gold nor the Sinomine Resource Group, who owns the Tanco mine, were available for comment by print deadline.
Canadian Gold Corp. has suspended exploration of its gold mine project near Tartan Lake, which is close to a wildfire threatening Flin Flon. Roughly 10 people — a drill crew, geologists and assistants — have been transported to Winnipeg, Swan River and Saskatchewan, Canadian Gold's president said.
The company has been drilling in the area since 2021. There's a bridge to access its site and a machine shop used for geological work.
Company president Michael Swistun doesn't know whether the infrastructure remains. Fires appeared to be close by, he said.
'As unfortunate as it is to have a loss, it can always be replaced,' he added. 'Nothing is more paramount than life. The fact (that) everybody has got out safely and is safe and sound is really the priority.'
Swistun expressed gratitude to firefighters and the province of Manitoba for their efforts.
In Bissett, junior explorer 1911 Gold has halted operations of its True North complex. The site includes a 1,300 tonnes per day processing plant and a gold deposit.
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All 1911 Gold personnel have been safely relocated, the company said in a news release. True North camp facilities were open to front-line responders; an evacuation order came down on Bissett last week.
Callinex Mines, which has a project near Flin Flon, hasn't been affected by current wildfires. However, it was severely impacted by fire last year, the company said. Staff are working on a Newfoundland site.
'Our hearts and thoughts and prayers are with everyone that are actively fighting the fires right now,' said John Morris, co-director of the Mining Association of Manitoba Inc.
Not all mines have been affected by fires and evacuations, he added: 'We're just hoping for rain and hoping that the situation can be under control as soon as possible.'
Gabrielle PichéReporter
Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle.
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