Galore Creek Mine Suspended

By 250 News

The Galore Creek  mine project is on hold.

Nova Gold and Teck Cominco have announced they are suspending construction at the Galore Creek copper-gold project   in the  B.C. Northwest, because of escalating construction costs.

The review of the project indicates the construction costs have more than doubled from the estimated $2 billion to $5 billion.  In particular, the costs involved in the development of a tailings pond, and a dam are being blamed for pushing the costs up.  The value of the Canadian dollar is also having an impact as well as the rising construction costs worldwide.

Prince George North MLA Pat Bell says  he is not surprised to hear  the project is  being  put on hold “I had heard for some time that there were concerns over cost escalation” says Bell.  The deposit is one of the best in the world, and although it had initially been discovered in the ‘50’s   access has been the main reason why it wasn’t developed before now.  Bell is confident the companies will proceed sooner rather than later “They have some very good players on their team, and while this is bit of a step backward, I expect you will see the project resume in the not too distant future.”

According to Nova Gold Resources, there are over 400 contractors and employees currently working on the Galore Creek project.  Their fate is not yet clear as Nova Gold and Teck  Cominco will  “review its personnel and supplier requirement over the weeks ahead.”

Certainly the delaying of the project will be felt by several companies and workers from the Prince George area.  One supplier commented that everything from fuel to machinery to employees have been sent from Prince George to work on the Galore Creek project. “People don’t realize just what an impact this is going to have on Prince George.”

Bruce Sutherland, President and CEO of  Wolf Tek Industries says the news is not good “It will have an impact on those of us who are trying to diversify in the wake of the slowdown in forestry.  It is also concerning that first we have the  Kemess decision (environmental panel  advised project should not go ahead as planned) and now this.  I have no doubt it will go ahead at some  time,  but this is having an impact on all of us who were getting involved in the bidding process  for services.”

Sutherland says  he is also worried about  the big picture, how news of this will impact investors from other parts of the world and is concerned they may think  twice about mining investments in B.C. “The good news is the highway 37 corridor is still going to  be electrified (provincial plan to  put the corridor on the electrical grid) an there are still 4 to 6 mines that are on the go. “

Nova Gold and Teck Cominco say  they  are “committed to supporting its employees, contractors, suppliers and partners through this difficult period.”

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